“If we divide the 2001 net tax gap estimate of $255 billion by 130 million individual taxpayers, we can see that each of those taxpayers in 2001 paid, on average, an extra $2,000 to subsidize the unwillingness or inability of some taxpayers to pay their fair share.”

In 2001 the average taxpayer paid $8,265 in taxes. With an estimated tax gap – which is the difference between what taxpayers should pay and what they actually pay on a timely basis – of $345 billion, this means that the 130 million taxpayers paid on average $2,649 more in taxes to subsidize the unwillingness or inability of some taxpayers to pay their fair share.

In other words, if everyone paid the taxes they owed, average individual income taxes paid per taxpayer could have been 32.1 percent less.

Click to view the entire What the federal tax system is costing you – besides your taxes! Tax compliance facts white paper.

This is your chance to join a peaceful demonstration to express your displeasure at both the National and State burdens which we now shoulder and will be increased, upon us. Your chance to let your representatives know in both D.C. and Minnesota, we have had enough and are very unhappy at how they are not listing to the very people who elected them to their positions, and can un-elect them also.

Come join your neighbors at the MN Capitol grounds on April 15 commencing at 5:PM to 9:PM. There is a lineup of speakers who are Conservatives with a message. Meet your neighbors of like morals and views and visit the many booths where you may learn how you can get active and help in the struggle to send our Representatives the message of smaller government, lower taxes and a business culture that grows entrepreneurship and jobs jobs jobs. And it will take all of us to do this job and, If you don’t get active or help in the struggle, you will have no right to criticize the results. Sooooo, Put the date on your calendar, gather a neighbor ot two and get to the event on April 15 at the Capitol. It is your future too that is being affected by what is going on in Government today.

Any while there, be sure and stop by the FAIR TAX 4 MN booth and say Hello. We have a member of our group on the Speaker’s schedule. Learn more about how the Fair Tax can be a part of Minnesota tax policies. Our goal is to make April 15, just another spring day by not being required to file either State or National taxes.

HAVING in the three last numbers taken a summary review of the principal circumstances and events which have depicted the genius and fate of other confederate governments, I shall now proceed in the enumeration of the most important of those defects which have hitherto disappointed our hopes from the system established among ourselves. To form a safe and satisfactory judgment of the proper remedy, it is absolutely necessary that we should be well acquainted with the extent and malignity of the disease.

. . . There is no method of steering clear of this inconvenience, but by authorizing the national government to raise its own revenues in its own way. Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions. If inequalities should arise in some States from duties on particular objects, these will, in all probability, be counterbalanced by proportional inequalities in other States, from the duties on other objects. In the course of time and things, an equilibrium, as far as it is attainable in so complicated a subject, will be established everywhere. Or, if inequalities should still exist, they would neither be so great in their degree, so uniform in their operation, nor so odious in their appearance, as those which would necessarily spring from quotas, upon any scale that can possibly be devised.

It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue.

By Alexander Hamilton
for the Independent Journal

The Entire Federalist No. 21 Paper (PDF)

The original income tax legislation affected only individuals earning $4,000 or more per year, at a time when the overwhelming majority of Americans earned far less. The 16th Amendment was eventually ratified and added to the Constitution, and a national income tax was born.

That 16th Amendment was simply worded, the tax return consisted of only one page, and the entire tax code itself consisted of only 14 pages. No one could have imagined the vast impact it would have on the lives of their children, grandchildren, and future generations of Americans.

Since then, the federal income tax system has become so complex that it requires tens of millions of Americans to seek professional help to comply with it, not to mention the enormous, expensive federal bureaucracy required to enforce and administer the tax. The Internal Revenue Service employs more investigative agents than the FBI and the CIA combined, and with 144,000 employees, employs more people than all but the 36 largest corporations in the United States.

In addition to the $10 billion needed to operate the IRS, at least $265 billion (that is $900 for every man, woman, and child in this country) must be added to account for the cost of complying with the tax code. Massive amounts of our national wealth are consumed merely by measuring, tracking, sheltering, documenting, and filing our annual income.

More about the History of Taxation