Ravenwood - 03/24/05 07:15 AM
Herman Cain looks at how dishonest and sneaky Congress can get when it comes to getting their hands on your money. He details what he calls sneak-a-taxes; those taxes that are passed using broken promises (or perhaps outright lies).
Consider the withholding of income taxes. Congress enacted automatic withholding in 1943 as a way to fill the U.S. Treasury coffers each month and mask the true cost of federal spending. Congress explained to the public that, since the United States was busy fighting World War II, automatic withholding was necessary to fund the war effort in a timely fashion.Keep this in mind when you pay your income taxes this year, or the next time you hear a politician talk about the mythical "social security trust fund" or "guaranteed benefits".Congress also promised that withholding would end as soon as the war was over. That war ended 60 years ago. [...]
The alternative minimum tax is another sneak-a-tax that should have been repealed years ago. The AMT laws were enacted in 1969 by a Democratic-controlled Congress to sock it to the so-called rich.
The AMT is a calculation that assigns an alternate tax amount due if your regular income tax liability is not as high as Congress would like it to be. It is simply an unfair way of forcing people to pay more taxes, even if they follow all the rules and mandates in the convoluted tax code. . .All because you and your spouse worked hard enough to earn at least $75,000, which in 1969 was considered rich. [...]
More sneak-a-taxes include corporate income taxes, which lead to higher consumer prices, the double taxation on dividends and corporate earnings, taxes paid on Social Security benefits, raising the maximum income subject to payroll taxes, lowering the maximum limit for certain taxable deductions, limiting the equipment expensing amount for small businesses, and the many taxes, fees, and surcharges hidden in your monthly phone bill.
In fact, one of the most ridiculous sneak-a-taxes is the Federal Excise Tax. The Federal Excise Tax, which is figured at 3 percent of your phone bill, was enacted in 1898 to help pay for the Spanish-American War. That war ended 107 years ago.
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