Taxation is Theft: A Plan to Reduce and Simplify Taxes for Every American

Big Picture

The American tax system is fundamentally broken. It is overly complex, punitive, and morally unjust, allowing the government to confiscate wealth through burdensome taxation, hidden fees, and an ever-expanding bureaucracy. The Founding Fathers never intended for the federal government to have the power to directly seize the earnings of its citizens, yet today, Americans are forced to surrender a significant portion of their income to fund an inefficient, bloated federal government.

The modern taxation system has become a tool of wealth redistribution, economic manipulation, and government dependency. Instead of fostering prosperity and financial independence, the system punishes success, stifles economic growth, and funds a wasteful bureaucracy that does little to improve the lives of hard-working Americans.

It is time for a complete overhaul of the federal tax system—one that returns wealth to the people, eliminates unnecessary government intervention, and ensures that taxation is fair, simple, and transparent. This policy proposal outlines a four-point plan to achieve this goal by reducing, simplifying, and ultimately restructuring the tax system.

Operative Definitions

Income Tax – A direct tax imposed on individuals and businesses based on their earnings, currently enforced through the Internal Revenue Service (IRS).
Flat Tax – A tax system that imposes a single, uniform tax rate on all income levels, eliminating progressive tax brackets.
Fair Tax (National Sales Tax) – A proposal to eliminate the income tax entirely and replace it with a national consumption tax on goods and services.
Capital Gains Tax – A tax on profits earned from investments, often discouraging economic growth and long-term wealth creation.
Corporate Tax – A tax imposed on businesses’ profits, which often results in higher consumer prices and lower wages.

Important Facts and Statistics

The federal tax code is nearly 75,000 pages long, filled with loopholes, special interest exemptions, and burdensome compliance requirements (Tax Foundation, 2023).
The IRS collected over $4.9 trillion in taxes in 2023, yet the national debt continues to rise past $34 trillion, proving that higher taxation does not equate to fiscal responsibility (Congressional Budget Office, 2023).
The top 1% of income earners already pay 42% of all federal income taxes, while nearly 50% of Americans pay little to no income tax at all, creating a system where the few subsidize the many (IRS Data, 2022).
Government waste is rampant—over $247 billion in improper payments were made by federal agencies in 2022 alone (Government Accountability Office, 2022).
Countries with lower tax burdens tend to have stronger economic growth—for example, Ireland’s corporate tax rate of 12.5% has made it one of Europe’s fastest-growing economies (OECD, 2023).

Four-Point Plan

(1) Implement a Flat Tax or National Sales Tax to Replace the Progressive Income Tax

The current progressive tax system punishes success and discourages economic growth. Instead of forcing high earners to subsidize government waste, a flat tax or national sales tax would ensure a fair, transparent, and efficient tax system.

Flat Tax Model:
- Replace all current tax brackets with a single low-rate tax (e.g., 15%) for all income levels.
- Eliminate most deductions, ensuring a fair, simple system that rewards productivity.
National Sales Tax (Fair Tax) Model:
- Abolish the income tax entirely and replace it with a 15-20% national sales tax.
- This system ensures everyone contributes based on consumption, not income.
- No tax on essentials like food and medicine, preventing undue burden on lower-income families.

The adoption of either system would eliminate tax loopholes, reduce IRS overreach, and place power back in the hands of consumers and businesses.

(2) Abolish the IRS and Replace It with a Simple Tax Collection Agency

The Internal Revenue Service (IRS) is an overpowered, corrupt institution that invades Americans’ privacy, abuses its authority, and operates without accountability. The agency’s history of targeting political dissidents (e.g., conservative groups under the Obama administration) proves that taxation has become a weaponized tool of government oppression.

Reduce the size of government by dismantling the IRS, replacing it with a smaller, non-intrusive tax agencyfocused solely on basic tax collection.
Eliminate excessive audits, particularly targeting middle-class and small business owners, who bear the brunt of the IRS’s enforcement actions.
Ensure that taxpayers deal with a simple, transparent system rather than navigating a bureaucratic nightmare of regulations, loopholes, and penalties.

(3) Reduce the Corporate Tax Rate and Eliminate Capital Gains Taxes

The corporate tax and capital gains tax are job-killers that discourage investment, push businesses overseas, and prevent long-term wealth creation. To ensure America remains a competitive global economy, we must:

Lower the corporate tax rate to 15% or lower to encourage business investment and job creation.
Eliminate the capital gains tax, allowing individuals to build wealth without government interference.
Create incentives for companies to invest in American workers, rather than seeking tax havens abroad.

The more money individuals and businesses keep, the stronger the economy grows.

(4) Cap Federal Spending and Implement a Balanced Budget Requirement

No tax reform will be effective unless government spending is drastically reduced. Washington’s reckless spending habits have led to a $34 trillion national debt, and taxing the wealthy will never be enough to cover the government’s bloated budget.

Cap government spending at 18% of GDP, ensuring it cannot grow beyond the economy’s ability to sustain it.
Pass a Balanced Budget Amendment, requiring Congress to spend only what it collects.
Eliminate wasteful spending, including billions in foreign aid, corporate subsidies, and unnecessary federal programs.

A government that spends within its means will never need to burden citizens with excessive taxation.

Why This Initiative Is Important

Taxation in its current form is legalized theft, allowing the government to seize the wealth of its citizens under threat of force. The current system punishes success, discourages investment, and funds an inefficient, bloated bureaucracy. Reforming taxation isn’t just about economic efficiency—it’s about moral justice and individual liberty.

This plan ensures that every American keeps more of what they earn, that government power is reined in, and that economic freedom remains at the heart of the American system. If we want to restore prosperity and personal autonomy, we must reduce and simplify taxes, eliminate wasteful government spending, and reject the tyranny of excessive taxation.

Sources

Tax Foundation. The Burden of the U.S. Tax Code, 2023.
Congressional Budget Office. Federal Revenue and Spending Report, 2023.
Internal Revenue Service (IRS). Annual Tax Collection Report, 2022.
Government Accountability Office. Waste and Fraud in Federal Spending, 2022.
Organization for Economic Co-operation and Development (OECD). Corporate Taxation and Economic Growth, 2023.

Taxation is Theft: A Plan to Reduce and Simplify Taxes for Every American