Once again, I am remiss in posting anything. My only excuse is age-related – I guess having turned 83, I’m just slowing down. Otherwise, my health is good. I find this latest from my friend and fellow Marine Greg earth-shattering as well. I cannot believe the Supreme Court can find anything in the Moore case to go along with the government. Absolutely crazy and could change everything about a capitalistic economy.
Taxing Tremors By: Greg Maresca
A 7.6 earthquake and its resulting tsunami on New Year’s Day that shook Japan set the stage as the faultless metaphor that will reverberate throughout 2024 and beyond. With the impending presidential election aside, the tremors of improbability arrived a month earlier when the Supreme Court decided to hear a case with profound implications for the federal income tax.
Moore v. U.S. will decide if the federal government can tax unrealized capital gains not yet received under the 16th Amendment. The justices agreed to hear the Moore’s appeal as the couple wanted their $14,729 refund that the Ninth U.S. Circuit Court of Appeals ruled against. The Ninth Circuit, known in legal circles as the “Ninth Circus,” has the worst record of any appeals court before the Supreme Court.
Like Roe v. Wade did last year, this case will have a huge and lasting ripple effect regarding future taxation that should concern everyone.
It is no secret that the nation is accruing debt that is unsustainable. The day of reckoning approaches. The irony is the case is named Moore – indeed “more” income through taxation.
Over a century of income tax laws has resulted in thousands of pages of decrees that carve out craters of exemptions in a labyrinth of directives. The tax code is a bloated, crony orchestrated, lobbyist measured disaster for those unable to manipulate it by hiring all those cunning accountants and attorneys who are paid handsomely to circumvent it.
When was the last time a member of Congress did their own taxes?
A fundamental reckoning from the ground up is long overdue to bury the income tax along with the IRS and replace them with a consumption tax or flat tax.
To tax unrealized capital gains not yet received is extreme. The power to regulate and tax is the power to destroy. Congress’s authority to tax does not include reinvested capital and personal property as income.
Income is money received.
Assets may increase in value, but until they are collected as interest, dividends or sold, there is no income. If you cannot spend it, it is not income.
You can’t pay the rent or fill your gas tank with paper gains or the appreciation of your home. When you gain on any financial instrument but do not sell you earn a “paper profit.” If unrealized gains are taxed, and the taxpayer has no cash to pay, a forced liquidation would be necessary for payment.
Are you prepared to pay a tax because your assets go up in value? House, car, pets, trading cards, comic books, Auntie Estelle’s antique coffee table – where does it end? Provided market values decline would monies be refunded? Stop laughing, that was no joke.
Uncle Sam wants all the golden eggs without having to buy the hens, the henhouse, and the chicken feed. The power brokers in Washington believe everything is subject to taxation real or imagined.
It is pitiful that this case is even necessary.
A tax in bad faith resulted in a revolution nearly 250 years ago. Such taxation realizes the socialist dream of equal outcomes regardless of effort, ingenuity, innovation, or lack thereof. Ayn Rand’s nightmare is finally realized.
The Supreme Court’s job is not about maximizing taxable income for Uncle Sam but to interpret if this tax is constitutional.
A ruling in favor of Uncle Sam will unleash Congress’ taxing power and devastate our economic system as we know it. Going forward, all unrealized income will become whatever the government says it is.
The Supreme Court’s decision is expected in June right in the middle of the presidential campaign. Provided the government loses and refusing to allow what they perceive as a crisis; Democrats will condemn the decision as a political red herring.
A Moore victory would also challenge other sections of the tax code that stands at nearly 7,000 pages. Provided they are unconstitutional; they must fall, too.
The income tax has been around since 1913 and its ability to produce revenue has never been assuaged by politics. The hardcore issue is the United States does not have a taxing problem, but a spending problem. Revenue is up but it can’t compete with current spending levels.
A ruling in favor of the government would only exacerbate such spending.
Postscript: I have given up on all the latest coming out of the military and especially our Corps. Absolutely sad! I am simply too old to even bother with it anymore. My stress level is more important to me.
In case you have not read your copy of the latest “Semper Fidelis, or if not retired and don’t get it, I always look at the “Taps” column looking for friends with whom I served. I saw MajGen Dennis Murphy listed this month. Sad, I considered him another Ernie Cheatham – a warrior. He gave me Huxley’s Whores.
Well, this is election year. Do we really believe the liberals are going to allow a legal, valid election? I don’t!
