Practical option for going on strike
We've all talked about what it would be like to go on strike, or what a true Galt's Gulch would look like. Here's an idea from an email conversation with some friends of mine:
"If there was a national tax revolt, we might tie [the Fed's] hands. They can plan until the cows come home, but if taxpayers said, "NO!" with our cash instead of our mouths and stopped paying taxes, most everything would grind to a halt - and not just [the specific gov atrocity we were talking about]. Huge shutdown. There would be panic among the government to get things rolling again. At that point the people have leverage. But that would require a unified opposition. We better not hold our breath on that one."
That led me to think: are there other ways that we can greatly reduce tax revenue (even if they raised taxes) within the current code?
• Is there a way for everyone to file tax extensions indefinitely without actually paying money? Technically, we'd "agree that we owe" XX amount of money, but give them a note of debt and keep the cash set aside in our bank accounts.
• Can we create an underground economy, where bartering is the only accepted currency? Obviously gold was used in the gulch, but technically gold is just an acceptable standard... If I trade my eggs for someone else's milk, then no sales tax is applicable. AND, if almost everything I "buy" is from bartering, I can lower my income drastically and give the IRS less.
• Or do you think we could actually get a nationwide tax strike off the ground?
"If there was a national tax revolt, we might tie [the Fed's] hands. They can plan until the cows come home, but if taxpayers said, "NO!" with our cash instead of our mouths and stopped paying taxes, most everything would grind to a halt - and not just [the specific gov atrocity we were talking about]. Huge shutdown. There would be panic among the government to get things rolling again. At that point the people have leverage. But that would require a unified opposition. We better not hold our breath on that one."
That led me to think: are there other ways that we can greatly reduce tax revenue (even if they raised taxes) within the current code?
• Is there a way for everyone to file tax extensions indefinitely without actually paying money? Technically, we'd "agree that we owe" XX amount of money, but give them a note of debt and keep the cash set aside in our bank accounts.
• Can we create an underground economy, where bartering is the only accepted currency? Obviously gold was used in the gulch, but technically gold is just an acceptable standard... If I trade my eggs for someone else's milk, then no sales tax is applicable. AND, if almost everything I "buy" is from bartering, I can lower my income drastically and give the IRS less.
• Or do you think we could actually get a nationwide tax strike off the ground?
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That would also have to include a plan for moving all liquid assets out of the federal banking system and into another mode of payment.
Switching to consumption at local small businesses using local script instead of legal tender currency aka federal reserve notes would also be required.
Unfortunately it would further wreck the economy as a side effect.
I haven't looked into the regs themselves so I could be wrong, but I prefer to err on the side of caution when dealing with the IRS, who has been shown to be a politically controlled agency with power to destroy even economically strong entities.
In recent years people have been prosecuted for conspiracy to tax evasion and the evidence in tax cases does not have to conform to evidence in criminal court.
I think that there are tax regs that include taxation of barter when done on a consistent basis, but again, I have not read the regs or cases, so that could be the IRS "opinion" which nearly always is biased against the taxpayer.
This is not your grandfather's America.
I would hate to see anyone here prosecuted in tax court for an innocent discussion. Today that is a real possibility.
The difficulty in a strike - as will all strikes, including the lovely unions - is that everyone jumps on board. Obviously, the "scab" in this situation would be someone who still pays their taxes - most likely out of fear that no one else is really going to strike. Unification is the weakest part of the idea, because even though none of us can stand what's going on with the fed, I assume that most everyone still fears their power.
This is the line that makes me think eggs for milk wouldn't be taxed:
"The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis."
So - if your income actually comes from selling eggs or milk, then you'd technically have to pay tax on the "transaction." But if not, I don't think that tax would apply.
[edit] Which makes me wonder if Rand was even more prophetic in choosing to have the Gulcher's real-world jobs be different from their primary profession - that way John Galt could barter engineering while only making income as a train laborer.
I guess completely going on strike would only be possible if you're not paying throughout the year.