[GJM] Fwd: A FLAT U.S. FLAT WEALTH TAX SOLUTION FOR BUDGET DEFICIT REDUCTION AND TAX EQUITY

[E. Crockett]

--- "E. Crockett" <echojurist at yahoo.com> wrote:

> Date: Wed, 26 Mar 2008 08:55:02 -0700 (PDT)
> From: "E. Crockett" <echojurist at yahoo.com>
> Subject: A FLAT U.S. FLAT WEALTH TAX SOLUTION FOR
> BUDGET DEFICIT REDUCTION AND TAX EQUITY
> To: echojurist at yahoo.com
> CC: r.gipson at earthlink.net
> 
> From:  Prof Ulysses S. Crockett, Jr, J.D. '71 boalt
> hall School of Law Uiversity California Berkeley; 
> LL.M. '73  Columbia University Law School; Visiting
> Scholar '84 Yake Law School (Federal Corporate
> Taxation  Under Supervision of Distinguished
> Professor
> Boris Bittker);
> Visitiing Scholar Hoover Institute Leland Stanford
> Junior University (Federal Tax Equity Reform
> Legislation under supervision of Distiniguished
> Professor Joseph Pechman, tennis partner against
> Nobel
> Laureate Economics Gary Becker - who prevailed
> against
> Crockett and Beckman in most tennis encounters); 
> Dean
> of Instruction '87 to present,  Carlton R. Inniss,
> III
> Oakland Alameda County Community Law School, Inc.
> 
>    see Ulysses S Crockett, Jr., 'Federal Taxation of
> Corporate Unifications: A Review Of Legislative
> Policy'. 15 DUQUESNE LAW REVIEW 1 (1976;  'Federal
> Taxation Of Interest On Indebtednes In Corporate
> Acquisitions:  CoNgressional Response In Merger Tax
> REform' 10 INDIANA LAW REVIEW 419 (1976).
>     echojurist at yahoo.com
>     http://blogigo.com/ulyssesecojurist.
>     see also,  www on-line radio Funky 16 Corners
> 37th
> Anniversary Mix, 'Major Funky' by Ulysses Crockett
> Afro Blue Persuasion:  John Miller-piano, Bing
> Nathan-Bass, Clark Najo Batte Miller-Druns, Harold
> 'Butch' Haynes-Conga Druns, Wiley Trass-Tamborine,
> Ulysses Crockett-Vibraphones, flute, recorded live
> at
> KPFA Berkeley,CA studios 1967.
> 
> To:  United States, Russian Republic,, Republic of
> China Republic of Pakistan, Ministries of Finance at
> South Africa, Namibia, Kenya  United Nations Human
> Rights Commission, Taxation Faculties United States
> Schools of Law.
> 
> 
>     PRESS RELEASE - PRESS RELEASE - PRESS RELEASE
> 
> DATELINE:  March 25, 2008 at Emeryville, CA
> 
> SUBJECT:  WORLD PEACE AND ENVIRONMENTAL PRESERVATION
> THROUGH EQUITABLE TAXATION:  FLAT RATE WEALTH
> TAXATION
> IN DEV0ELOPED AND DEVELOPING WORLD
> 
>     1.  CONCISE TAXATION/FISCAL HISTORY OF UNITED
> STATES:
> 
>     
>     We begin with  first President George
> Washington's
> Revolutionary War Assistant and later Chief Treasury
> Official, Alexander Hamilton's critical decision on
> how to expend seriously limited U.S. revenues
> immediately after the end of the revolutionary war. 
> The U.S., having incurred extensive indebtedness to
> France and to its unpaid soldiers was faced with
> which
> creditor to pay, the Treasury not having sufficient
> funds to do both.  Concerned U.S. cititizens and the
> 35 percent of eligible voters wo actually vote are
> reminded that President George Washington relied
> heavily on lexander Hamilton, not only for critical
> strategic war operations decision-making but also on
> the structuring of the United State finance and
> banking system immediately following the war.  In
> this
> connection, Hamilton made the correct but harsh
> decision to pay France instead of paying the
> soldiers,
> many of whom were unwealthy farmers. Hamilton
> understood that the young Republic had little chance
> of succeeding if foreign countries could not trust
> the
> new government to be an economically viable entity
> in
> the world community.  In fact few foreign government
> leaders believed that the United States experiment
> would work at all.
> 
>     2.  From its inception to 1913, the majority of
> federal revenues were derived from sales transfer
> taxes and tariffs (a form of taxation) on imported
> goods.  Parenthetically, despite the dysfunctional
> World Trade Agreement structure and operations,
> major
> world economies such as Republic of China, in order
> to
> protect and develop its own industries, impose high
> tariffs on imports of goods which compete with its
> domestic industries.  The demise of United States
> domestic manufacturing industries is the direct
> result
> of failure learn this siimple lesson.
> 
>     3.  In order to amend the U.S., constitution
> ratification by the several states is required.  As
> a
> matter of record, the various state laws governing
> ratification were not followed by several state
> legislatures proposing to ratify the U.S.
> Constitution
> initiating the U.S. Income tax which now faces
> serious
> legal challenges by disgruntled taxpayers.  A legal
> definition of bankruptcy is the inability to pay
> debts
> as they become due.  Accordingly, The United States,
> under this defiinition has been bankrupt since
> unilateral invasion and occupation of Afghaistan and
> Iraq.  Income tax revenues are woefully insufficient
> to  repay the trillions of dollars borrowed from
> China, Russian and European Union states which are
> financing these illegal United Sates wars and
> occupation of foreign countries.  It is thus
> critical
> that U.S. Congress and Executive administration
> enact
> equitable revenue producing legislation which will
> allow for national debt repayment and for repair and
> maintenance of the crumbling United States
> infrastructure - highways, bridges, waterways, et
> al.
> 
>     4.  Since United States tax/fiscal economic
> legislation is drafted by  the minority wealthy
> class
> and members of the Council On Foreign Relations 
> with
> their thousands of lobbyists who oppose equitable
> taxation, major restructuring of the federal tax
> system will be difficult.  It is increasingly
> evident,
> however, that the United States government has
> little
> choice.  Under the United States tax system,
> residents
> are asked to pay taxes each year with some
> exceptions
> allowing carryovers and carrybacks of realized and
> recognized losses.  An equitable tax system  must
> provide for a similar periodic redistribution of
> wealth to obviate the offensive widening wealth gap
> between the wealthiest  one percent of taxapayers
> and
> the the remaining 99 percent.  The former Leland
> Stanford Junior University economics professor
> proposed such period wealth redistribution in his
> celebrated work, 'Theory Of The Leisure Class'.  
> Noteworthy, also is Prof. Lawson's important writing
> iin 76 Yale law Journal wherein it is proposed that
> tax be imposed annually on the increase in stocks
> and
> selected other taxpayer controlled assets.  We must
> now analyze the tax concepts of 'recognition' and
> 'realization'.
> 
>     5.  Under Internal Revenue Code Section 1001,
> the
> imposition of tax requires 'realization' and 
> 'recognition' of gain by sale or other disposition
> of
> an assets, such as stocks or other property.  For
> example, an asset or stock may increase in value (be
> realized) but there is no taxable event until the
> realized gain in value is recognized by a sale or
> other disposition.  Herein the definition of what
> constitutes a 'sale' is important.  The seller must
> relinquish complete ownership and control of the
> assets in question to be subject to imposition of
> tax.
> Under the Slawson proposal, assets which increase in
> value during the taxing period are subject to tax
> without a requirement of sale or disposition. 
> Correspondingly, a deduction is allowed for assets
> which decrease in value during the tax period.  The
> fiscal benefit of the forementioned procedure is
> obvious since the government would receive greater
> revenue annually permitting more efficient
> operations
> of government functions.  Intuitively, the Slawson
> proposed tax on realized gain is economically
> similar
> to a taxation on wealth.
> 
>     6.  ECONOMIC EQUITY AND EFFICIENCY OF A FEDERAL
> ANNUAL TAX ON WEALTH:  Many enlightened european
> countries impose a tax on wealth a rates leading
> economist measure as low. For the United States,
> imposition of a flat rate wealth tax a moderate
> would
> obviate the need for the income tax and ensure a
> more
> simplified tax system.  In addtion, the
> multi-billion
> industry of tax practitioners and preparers would be
> available for more productive activities.
> 
>     7.  RESTRUCTING AND SIMPLIFYING TAXATION OF
> BUSINESS ENTITIES:  Subchapter S of the Internal
> Revenue Code provides for the taxation of so-called
> "small busiiness" entities (35 or fewer owners)
> where
> entity profits are taxed directly to the
> shareholders
> in proportion to their respective percentage of
> ownership. Members of a partnership are taxed in
> similar fashion as provided in Internal Revenue Code
> Sections 701-761 passim, Subchapter K.  The
> partnership itself as an entity is not subject to
> tax.
>  There is no sound economic reason for all
> corporations taxing all corporations in the manner
> of
> S corporations and partnership.  Obviating taxation
> at
> the corporate level would permit eliminination in
> its
> entirety of Subchapter C which provides for taxation
> of corporate earnings at the corporate level.  
> There
> is also no sound economic reason for delayng
> taxation
> of individual owners on earnings of business
> entities
> whether or not such earnings are distributed to the
> owners.  Intelligent legislation would provide that
> business report its annual earnings to the Inernal
> Revenue service, individual owners taxed on their
> pro-rata share of earnings and the need for a
> complex
> Internal Revenue Code set of cumberssome rules would
> be eliminated.  The concept of tax equity  is not
> adversely affected if a Federal Wealth Tax is flat
> and
> not progressive.  Finally, it is submited that a
> Federal Flat Rate Wealth Tax together with taxation
> of
> business earnings at the individual ownership level
> would result in increased government revenues,
> minimize taxpayer fraud, failure to pay and maximize
> ease and efficiency of taxpayer compliance, tax
> administration  and enforcement procedures.
> 
> QUOD ERAD DEMONSTRADUM
>      
> 
> 
> 
> 
>      
>
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