A personal tea party tax plan

In the last year we have seen our Congress at its worst. It has acted with an unprecedented disdain for the wishes of the electorate. Unfortunately, this Congress is not alone in this type activity for we have seen many Congresses do the same, whether they were controlled by the Republican or Democrat parties.

So what recourse does the citizenry have when our elected officials proceed with such discordance? The general rule is to "throw the bums out". Well, we see how that usually works, what with the high rate of incumbents returning to office. Most people think that their "bums" are doing a pretty good job!

No, it is time to take a different tack. To impact the status quo we will have to find a single common denominator that is perceived as a strong enough of an issue so that most people can agree upon a course of action. That issue is "taxes". How can we use "taxes" as an issue to impact the federal government and Congress?

The lower 47% of wage earners contribute each pay period, but receive a full refund the following year. Some actually receive much more back than they paid in due to the Earned Income Tax Credit. In regard to them what I propose will make no difference. In fact my proposal will draw a bright line to highlight the very problem we have with the way our government is funded.

Very simply, our government depends on the assumption that most of the tax payers "allow" for the withholding of a percentage of our pay for federal taxes. It is the 53% of the upper wage earners that literally "tote the note". And how does most of that 53% of wage earners actually pay their taxes? They do the very same as most everyone else; automatic withholding.

Let me suggest a different plan of action. This is a plan that I have already implemented in my personal life. I had my employer change my status to 12 exemptions, effectively withholding no taxes from my paycheck. Instead I have created an additional savings account. My first saving account is a traditional personal account for emergencies and other needs. A second savings account has contributions for my local property taxes, car and house insurance. The new third savings account is for my federal income taxes. You just look at any earlier pay stub to see what has been withheld to decide how much to contribute to that account each pay period then make a simple transfer to the account.

The net effect on your operating capital each pay period is the same. What is different is that now YOU have control of those dollars, not the federal government. Secondly it will have the effect to let you see, in real money terms, how much of your hard-earned dollars the federal government is taking and, in most cases, wasting.

If a majority of the net tax payers, those 53%, started this on January 1st, 2011, the federal government would not receive any funds from us until April 15th of 2012, the first date that those dollars would come due. 

The timing of this program is perfect to impact the next Presidential election. What effect would this have on both the federal government and Congress? In reality it would probably crash the US federal monetary system. Yes, the government would only print more paper, but that would just exacerbate an already untenable situation.

And that, my friends, is the point. I firmly believe that we must push the system to the breaking point. As it now stands we are just like a frog being slowly boiled. As the water continues to get warmer and warmer we just acclimate ourselves to the new temperature. Only by jamming the temperature to its highest level as quickly as possible, by creating a huge cash shortage for the federal government, will we effect change on Congress and the federal government.

And this revolution happens without firing a shot.


Dan Shea


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