# Eliminate Taxes Completely! What if there were no tax at all?

Updated on August 24, 2014

What would happen if by some miracle all the taxes disappeared in America. One hundred years ago the American people hardly paid any tax at all and we were a prosperous country.

Nowadays people say that we should tax the rich. But, a person who makes a million dollar salary already pays about 60% of their income in taxes while someone who makes about \$40,000 only pays about 30%. And if we tax the rich who will start businesses? Who will hire people? Regardless of how much a person pays, taxes are the main source of economic stagnation in this country. In other words, if you would like to see America prosper again you must reduce taxes and I would argue eliminate taxes completely.

While a great percentage of taxes come from the income tax, many people do not understand the large amount of tax that is derived from just purchasing everyday products. There are taxes on just about everything. However, these taxes are hidden because they are built into the price you pay for items. Here is a list of items with hidden taxes as told by MSN's Judy Hasson:

Here are some items whose prices are jacked up with import taxes:

Taxes on imported goods

Bicycles

11%

Cotton hammocks

15%

Certain infant formulas

18%

Table linens

12%

## Would you like to see all taxes eliminated?

See results

Flashlights

18%

Peanut butter

143%

Girdles

24%

Telephones

8%

Brooms

32%

Plastic school supplies

5%

Source: Institute for Policy Innovation, Washington, D.C.

Almost everything you buy is taxed in some way, shape or form, from the milk you buy at the grocery store to the insurance policy your employer provides to your cell phone service. But, because the tax is built into the price of the item most people never see it. According to the Institute for Policy Innovation Americans pay an additional \$2,462 per person in hidden taxes per year.

### Examples of How Taxes are Hidden in the Price of Goods

Americans for Tax Reform (ATR) has calculated several examples of how taxes affect the purchase price of several goods and services. The ATR figures include the impact of all taxes — not just certain hidden taxes — on prices. According to ATR:

• Taxes account for 35 cents of the cost of a \$1.14 loaf of bread.

• 18 cents of a 50-cent can of soda go toward taxes.

• 72 percent of the cost of a 750-ml bottle of liquor goes toward taxes.

• Taxes for an \$80 hotel room average 43 percent.

• Taxes account for \$63.60 of a \$159 airline ticket.

• A \$153.09 monthly utility bill consists of \$39.35 in taxes.

• Over half the cost of a \$3.33 gallon of gasoline is due to taxes.22

A 1992 Cato Institute study looked at taxes somewhat differently, calculating how much someone needed to earn to have enough after-tax dollars to purchase several products. The study concluded that a typical worker needed to earn \$17,038 to buy a \$10,000 car, and \$2,556 to purchase a \$1,500 computer.23

These figures were from 1992, the figures today are much higher and NONE have gone down, if anything the rates will continue to skyrocket. When you consider how much money is paid out in taxes and then you also consider how much of those products and services were purchased using credit cards so that interest is then added to this amount and inflation it's no wonder that we are in big trouble in this country.

The reason that we have such a high unemployment rate in this country is because many businesses have gone off-shore to avoid paying taxes. Just think if we had a magic wand and we could eliminate all taxes. Immediately everyone would get a large raise in their take home salary. The wars would be de-funded. Business would be re-energized. People could start new businesses without all of the tax burden that other countries employ and America would be seen as the place to do business. Prices on everything would plummet and incomes would rise. Schools, hospitals and charities would have to find new methods of funding. But, more people would have more money to give to charitable organizations. And jobs would be created because businesses would have more expendable income to grow.

Taxes are a form of slavery. When you are taxed you are being deprived of your money and therefore the time that it took to acquire that money. The more one is taxed the greater the slavery.

Instead of taxes we could have fees. Fees could be levied for schools, roads and infrastructure from people who use them and other expenses like government could be cut way down and financed through a flat sales tax.

Furthermore, the federal income tax which is illegal does NOT PAY FOR ANYTHING! All of that tax goes to paying the INTEREST on the 17 TRILLION dollar debt we owe!

If we want to see our country prosper, we must eliminate all taxes. We did without the majority of them 100 years ago and we can do without them today. It's the only way out!

## Popular

376

45

• ### UK Tax and Affiliate Marketing

11

0 of 8192 characters used
• Grace

13 months ago

What wows me the most is how you casually waved away all the problems that your suggestion would cause. I read this article to see how you would handle the problem but no all you offered was something along the lines of “oh yeah hospitals and schools would have to find new funding”. First of all people having more money would change nothing because the prices of goods would just get higher - and public services require so much more money then people are willing to give - not to mention the fact that the government Has a goal to try and make most areas equally funded. If it was donation based you would have some really poorly funded areas and some really well funded areas and this would lead to migration and a large gap between the lives of the rich and poor

• Kevin

18 months ago

The federal income tax is responsible for 47% of the revenue of the federal government. All federal agencies receive their funding by submitting budget requests to Congress. These requests have to submitted each year. If we were to eliminate income tax and all other taxes there would be no federal public services like the law enforcement of the FBI, ATF, CIA, or programs like HUD that provides funding for needy families and provides them a way to have a home and not a street corner. One hundred years ago the population of the country wasn't near as high as it is today. 76 million people were counted in the 1900 census and the majority of the population were farmers and today an estimated 327.876 million people live in the United States. Our country has grown in the last 118 years. Taxes are a necessary evil. We all hate them, but the government programs and services we take for granted are funded by them.

• milanooo

3 years ago

How about eliminate all taxes and have a transaction tax? There are around \$445T worth of transactions within a year. Just 1% would produce \$4.45T, which is more than all the hefty taxes we are paying now.

Either it has to be enough to sustain funding all state and local governments as well or each state and local government can figure out an appropriate rate amount to fund their governments and eliminate debt. This could only work with absolutely no other taxes and if there is a higher rate for foreign transactions exported and cash withdrawals.

So lets consider a scenario where there is a transaction tax of 2%. You make \$50,000. So with the deposit of your \$50,000 there would be \$1,000 taken out initially. So you would have \$49,000 when you actually look at your account balance. Then if within the year you only make domestic purchases with no transfers to different accounts you will contribute an addition \$980. So your total taxes for the year would be \$1,980. So it would almost be like a 3.96% income tax if you do things like mentioned. That rate is higher if you send your money off-shore, if you withdrew the money for cash, or transfer it to other accounts to be spent or transferred back. Now let's consider the price of an item.

So let's say you take away the taxes and a loaf of bread cost \$0.79. Let's say normally the grocery store pays \$0.50 per loaf of bread. Now they would pay \$0.51 per loaf of bread or we can say \$0.52 in the event the supplier now also has to cover their taxes too. So the new price on the shelf will be \$0.82 and you will end up paying \$0.84. In the end that is \$0.30 less than you would currently be paying. Even if the grocery store decided to mark it up enough where the price remains the same you would still have to pay less than you do now unless you live in a state with currently no sales tax. Even if you live in a state with no sales tax now that your income isn't taxed as high you would have greater purchasing power where it wouldn't really matter.

• Cody

3 years ago

This is an old post but I happened to come across it.

My questions are:

1. Ok, so I pay no taxes and you told another commenter to "think outside the box" when they mentioned roads, schools, etc. How do you think this would be overcome? I think we would end up with a company that owns all the roads, one that owns all the schools, etc etc and they could charge whatever they wanted for the right to drive on the roads they own. Think cable/telecom companies but worse because people need roads, schools way more than cable. You seem to be in the "less government" camp but think back to before the monopoly rules and stuff, it wasn't exactly great.

2. Are you eliminating things like Social Security & Unemployment the next day after taxes go away? Paying them out for a while, or what? Those are funded by what are basically taxes and a lot of people rely on those, especially elderly people that can't just "go out and get a job" tomorrow.

3. "No taxes, it could work just think about it!" sounds great, but unless you and other people that throw these ideas around have solutions to those issues it's a pretty pointless idea.

• AUTHOR

Brie Hoffman

6 years ago from Manhattan

I'm glad you liked it Kathryn.

• Kathryn L Hill

6 years ago from LA

Thanks for a very informative Hub!

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Yes, I've watched some of his videos...seems good.

• umvb

8 years ago

Have you ever heard of Walter Burien? Brings up some valid points, too.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Yes, dream big they say.

• Angel Caleb Santos

8 years ago from Hampton Roads, Virginia

Ahh, it pays to dream. No taxes. Thanks for sharing.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

I couldn't agree more no body!

• Robert E Smith

8 years ago from Rochester, New York

Money is power over people. The more money the average person is forced to make to have it stolen is what fuels the thieves we as a country keep putting in office. Yet somehow the word reaches our ears via news outlets and talking heads that all of this is necessary. We need taxes they say (to keep their power over you) You Brie, would be considered a "talking head" of the right wing instead of just a woman that speaks the truth. There seems to be no truth just spin that spins to the left or right. The average Joe listens and hears two sides battling for power and no one talking to the guy who's supposed to know what to do. Why can't they all be like you and just state matters simply as they are and clearly? Why does it make so much sense to them to muddy the waters instead of state clear facts. Everything is a some study done by some pundant. Every fact is based on how the outcome is cast instead of truth. No wonder when we present people with the gospel they look at you to see what side you are spinning from. They don't know what any of the politics are about but they look at you who are approaching them with personal matters of salvation and dog-gone-it they are going to have something to say about this matter. Then we present them solid facts that are based on God's holy word and they look at us as if we are talking politics.

• Wesman Todd Shaw

8 years ago from Kaufman, Texas

Yeah, the death penalty monster machine. I can't believe he got re elected. My mother says it's because women find him attractive. He's got some . . .he's very against Taxes, and I can appreciate THAT about him, but little else.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Oh I've heard...Rick Perry right? Funny that you thought I said Texas!

• Wesman Todd Shaw

8 years ago from Kaufman, Texas

Awesome Hub! I have to admit, I'm so touchy that I'd thought that I'd seen "get rid of TEXAS completely!!!"

HAHAHAHAHAHAH!

Oh, we've got one of the most evil governors in the history of America. . . .but most folks don't even know it.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Well, I'm not so sure about the Condoleezza Rice...how about Ron Paul?

8 years ago from Long Beach, California

I've got it now!

Condoleezza Rice for President 2012, and Brie Hoffman for Vice President.

The liberals would literally cry. But you guy's would definitely win.

I'm for NO TAX, or at the very least, reasonable minimal taxation used for basic government only.

Great article that sheds plenty of light.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Yes, 100 years ago we had a larger middle class than we do now and if we didn't have taxes we wouldn't have had all those useless wars. Saying that taxes don't bother you is like saying that slavery doesn't bother you. Well you can live the life of a slave but I will not!

• larry towers

8 years ago

A hundred years ago? Prosperous? Are you daft? Yes the rich were richer, but the poor were living desperate terrible filthy lives. Workers were paid nothing. That was also before two world wars, the Korean war, the Vietnam war, the cold war and Gulf wars 1 & 2, Afghanistan not to mention adventures in a dozen other places.

None of that was free. Are you suggesting we default on our debts?

Taxes don't bother me, waste does.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

The majority of your tax money pays for interest on debt!

• rich_hayles

8 years ago

I don't mind paying taxes but I do mind the way it is spent and often wasted.

The bank bail out should never have happened. As it was partly your money that went to pay for it you sould be the one the benefits if they turn it around...but you won't.

As vaguesan states taxes pay for services. I would rather have them than not.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

I wonder what they did before they had all those taxes? Think outside the box man!

• vaguesan

8 years ago from Osaka, Japan

Yeah no taxes. But also no roads, no police, no firefighters. Sounds great to me.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

I don't think it will happen but I do think it would work.

• Tony Fernandez

8 years ago

End the taxes. Might as well try it. People tend to organize themselves better when they choose to do it rather than when they are forced to do it. Top-heavy controls are never as good as spontaneous order.

So let's end taxes. Why tax the most productive people of our economy? Where would we be without the capital that they provide?

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

Thanks JD.

• JD Barlow

8 years ago from Southeast US

You are absolutely correct.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

That's right!

• Elderyoungman

8 years ago from Worldwide

It's either they eliminate them or spend the money helping the population instead of invading and occupying countries.

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

The only fair tax is NO tax! Thanks for commenting gino.

• DESPICABLE VOTER

8 years ago from USA

FAIR TAX! END OF STORY. Good blog. Bad government!

• AUTHOR

Brie Hoffman

8 years ago from Manhattan

I can dream!

• Nan

8 years ago

Somehow I don't think that your dream will come true. There were taxes when Jesus was born!

working