A Peek Inside the IRS and Other Tax Stuff

The Four Protocols:

1. Find where they [the taxpayers] are.
2. Track what they do.
3. Learn what they have.
4. Execute what they fear.

The three Cs in ‘collection’:

• Cause- What did the TP [taxpayer] do—or not do—to fall behind or not file?
• Cure- What can the TP do—or not do—to bring the taxpayer back into compliance?
• Compliance- Is the TP current? If it’s a business, are the owners current? Is every entity they have an interest in current? Check everything, across the board.

Nine simple rules for not getting yourself killed [by a TP]:

1. Treat all taxpayers fairly and courteous.
2. Do not personalize collection efforts.
3. Listen carefully.
4. Do not threaten, scold, or patronize.
5. Recognize your own attitudes and eliminate those that are counterproductive.
6. Treat taxpayers as you would want to be treated.
7. Know where the exits are.
8. Avoid getting trapped.
9. Use force only sufficient to disengage.

Source: Confessions of a Tax Collector. One Man’s Tour of Duty Inside the IRS (2004) by Richard Yancey.

Taxpayer Bill of Rights:

1. The Right to Be Informed.
2. The Right to Quality Service.
3. The Right to Pay No More than the Correct Amount of Tax.
4. The Right to Challenge the IRS’s Position and Be Heard.
5. The Right to Appeal an IRS Decision in an Independent Forum
6. The Right to Finality.
7. The Right to Privacy.
8. The Right to Confidentiality.
9. The Right to Retain Representation.
10. The Right to a Fair and Just Tax System.

No taxation without respiration. –  Senator George Allen

Consider this, for starters. Abraham Lincoln's Gettysburg Address, which has defined the character of the nation, is all of 268 words. The Declaration of Independence runs about 1,300 words. The Constitution, which has served us for more than two centuries, comes to some 5,000 words. The Holy Bible has 773,000 words. The federal income tax code and all of its attendant rules and regulations: 9 million words and rising.  -- Steve Forbes

Taxation with representation ain't so hot either. - Gerald Barzan

Collecting more taxes than is absolutely necessary is legalized robbery. – Calvin Coolidge

The people suffer from famine because of the multitude of taxes consumed by their superiors. It is through this that they suffer famine. - Lao-Tzu

Capital punishment is when Washington comes up with a new tax. - Van Panopoulos

Here’s a summary of the history of the tax rate:

• 1862-1863: The start of the national income tax. Two tier system. Upper tax rate 5%.
• 1864-1866: Three tier system. Upper tax rate 10%.  Tax rate still not too bad.
• 1867-1869: One tier system. Upper tax rate 5%. By one tier I mean if the income is over a certain amount the taxpayer pays a certain rate. Otherwise the taxpayer pays nothing.  Even better yet.
• 1870-1872: One tier system. Upper tax rate 2.5%. Nice.
• 1873-1893, 1895-1912. No national income tax. This is called the good old days. How did America ever survive? You mean the world for the average American didn’t stop?
• 1894: One tier system. Upper tax rate: 2%.
• 1913-1915: Seven tier system! Upper tax rate: 7%.
• 1916: 14 tier system!! WTF? Upper tax rate: 15%.
• 1917: 21 tier system!!! Upper tax rate: 67%!
• 1918-1921: 56 tier system!!!!  Upper tax rates: 77% and73%

I would go on but you get the idea. The tier system went somewhat down then in 1932 it went to 55. The highest tax rate overall was 94% in 1944. It wasn’t until 1987 the tier system went back to a smaller five tier system with the upper tax rate at 38.5%. The next year the the tax code was a two tier system with upper tax rate set at 28%. The two tier system only lasted until 1991. The upper tax rate went up too. Everyone paid the same rates regardless of marriage status until 1949 where single and head of household paid the same rates as married filing separately. Married filling jointly incomes was split to compare against the brackets. In 1971, every marriage status had different brackets.

It’s interesting to note that througout America’s tax code history there never has been one single flat rate for everyone regardless of income. Probably because if everyone pays the same rate it would be harder for Washington to raise the rate too high otherwise the poor would feel the effect.

I believe the reason the progressive tax system got created is because the progressives believed the more you earn, the more you should be taxed. In other words, they think they were following a law of economics that says “if a seller thinks a buyer has a lot of money to spend then he will raise the price of his product or service.” This is an actual economic law. The problem is when you apply this law to taxing someone they don’t have a choice. They have to pay the tax rate. Or got to jail. Unlike the free-market system where the buyer can choose to pay the price or go on to another seller. But the progs don’t care. They think the rich has an endless supply of money or they hoard all the money.

Glenn Beck series “History of Taxation”:

• Taxes Part I: How Income Tax Began
• Taxes Part II: What Is a ‘Fair’ Income Tax Rate?
• Taxes Part III: The Reagan Years
• Taxes Part IV: The 2016 Candidates

A Tax on Income Attacks Life Itself

9 Charts You Need to See for Tax Day

Some news:

Daily Signal.com (Mar. 18): H&R block Wants to Make It Harder for You to File Taxes. Can you say chrony capitalist?