Do you really have to pay income tax in the US?
Over the years I’ve heard a few people saying they had heard you don’t really have to pay income tax in the US. Apparently some people go around trying to convince others that this is true because the sixteenth amendment to the U.S. constitution was not ratified properly or because it doesn’t say anywhere in U.S. laws that it’s required to pay taxes. Apparently they think everyone in the U.S. who pay taxes are fooled into doing so. These people might also try to sell you a kit with more information (red flag!!!).
I was curious and read a little about it. There’s a well-documented Wikipedia article that explains tax avoidance/mitigation versus tax evasion. Feel free to read the article in detail, but the basic concepts are:
- Tax avoidance/mitigation involves legal efforts to minimize the amount of tax you have to pay.
- Tax evasion involves illegal efforts to not pay tax as required by law.
- We really are required by law to pay income taxes, and high-profile law suits have proven this.
- The arguments used by “tax protesters” are typically invalid and are the same ones that have been used over and over and refuted.
It’s perfectly valid and reasonable to minimize the amount of tax you pay through avoidance/mitigation (for example, see http://utahtaxhelp.org). But yes, you really do have to pay. So goes the say, “if it sounds too good to be true, it probably is.” If something sounds like an easy way out of an obligation, it’s best to scrutinize it very closely
There is a stipulation in the tax code for people who accidentally make mistakes due to the complexity of the tax code. But you have to meet strict criteria to fall under that. Here’s a quote by Daniel B. Evans, a tax lawyer:
“[...] if you plan ahead to use it [the Cheek defense], then it is almost certain to fail, because your efforts to establish your ‘good faith belief’ are going to be used by the government as evidence that you knew that what you were doing was wrong when you did it, which is why you worked to set up a defense in advance. Planning not to file tax returns and avoid prosecution using a ‘good faith belief’ is kind of like planning to kill someone using a claim of ’self-defense.’ If you’ve planned in advance, then it shouldn’t work.” (full article)
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March 16th, 2008 at 9:24 am
Sadly, yes, we are all forced to pay taxes. As the old saying goes, there’s nothing guaranteed in life but death and taxes. As far as the US tax situation is concerned, personally, I think taxes are necessary, but people often forget about the hidden tax: inflation. By making your money worth less, it has basically taxed you without you knowing it. This is why the whole “economic stimulous bill” is just retarded. It basically borrows money that isn’t there, and tries to put it in our pockets for us to spend. Yeah, great, you took money from my kids to give to my now.
If you haven’t already, go to google video, and search for “Freedom to Facism”. While a little on the heavy side, it’s an interesting take on taxes today. Also, on their web site, they are selling the DVD version for $1. THe idea is you buy many, and give them out to people before tax day this year. If no one pays their taxes, then you have a revolt…that would be interesting….
March 16th, 2008 at 1:43 pm
No, you don’t have to pay federal income taxes. To avoid them legally, just have a low enough income. Have you ever heard of Don Schrader? See more background info at http://www.getrichslowly.org/blog/2008/02/11/extreme-personal-finance-america-on-10-a-day/ and his handwritten wikipedia entry at http://upload.wikimedia.org/wikipedia/en/5/5a/Don_Schrader_08OCT2006_Original_Hand_Written_Article.pdf
March 16th, 2008 at 10:26 pm
Here are two quotes from Elder Oaks about this topic:
“A related distortion is seen in the practice
of those who select a few sentences
from the teachings of a prophet and use
these to support their political agenda or
other personal purposes. In doing so, they
typically ignore the contrary implications of
other prophetic words, or even the clear
example of the prophet’s own actions. For
example, I have corresponded with several
Church members who sought to use something
President Benson is quoted as saying
as a basis for refusing to file an income-tax
return or to pay income taxes. I have tried
to persuade these persons that their interpretation
cannot be what President Benson
intended, because both he and his predecessors
in that sacred office, and all of the General Authorities, have faithfully filed
their income-tax returns and paid the taxes
required by law. The servants of God are
under the Master’s commands to follow him
and to be examples to the flock (1 Timothy
4:12; 1 Peter 5:3). We should interpret their
words in the light of their walk. To wrest
the words of a prophet to support a private
agenda, political or financial or otherwise,
is to try to manipulate the prophet, not to
follow him.” (Our Strengths Can Become Our Downfall, Elder Oaks)
First Presidency & Council of the Twelve: “Church members in any nation are obligated by the 12th article of faith to obey the tax laws of that nation. A member who refuses to file a tax return, to pay required income taxes, or to comply with a final judgment in a tax case, is in direct conflict with the law and with the teachings of the church…
If a member disapproves of tax laws, he may attempt to have them changed by legislation or constitutional amendment, or if he has a well-founded legal objection he may challenge them in the courts. (Quoted by Dallin H. Oaks in 1994 Provo Freedom Festival speech)”