Why do we tell them how much we earn?

President Obama appointed a deficit reduction commission. Without surprise, it recommends sort of cutting back a few programs (mostly defense), keeping non-defense federal payrolls flat for three years, and pushing Social Security retirement age out a few months (but not for decades).

Furthermore, there is a call for reducing income tax rates, but not without doing away with several coveted tax deductions (i.e., mortgage interest, employer-provided health insurance).

The idea is to flatten out spending (not eliminate programs) and increase tax revenue.

Rather than parsing these paltry pickings, let’s get to the heart of the matter, because, when we start with the wrong premise, we will always get the wrong answer. And here is the premise, at least as seen by our founding fathers:

Our founding fathers passed along to us protections to our unalienable right to property. Furthermore, they specified in the fourth amendment a right to privacy in our papers and personal effects. So why is it that we Americans have so easily decided the federal government has a right to know how much we earn and how much we own?

Don’t think I am some anti-tax nut for bringing this up, because in the protection of privacy from government intrusion we find the roots of individual liberty. Let me state it bluntly: Except for the inexplicable fact that we do nothing about it, we should never be forced to reveal to a government how much we earn or own. It is because we allow governments to violate this most basic principle, that we can never find a solution to our tax dilemma.

We can find legitimate ways to provide necessary revenue for the federal government without forcing us all to financially undress every year. Despite the fact that unthinking liberal ideologues make fun of it, and politically correct moderates and conservatives are afraid of being labeled by liberals, the only tax that makes sense is the one the founding fathers endorsed – an excise tax.

Just for a moment, close your eyes and try to imagine a personal and corporate economy in which you were not required to tell the government how much you earn – an economy without an income tax. Because if you like the idea, and realize it is foundational to liberty, you can have it.

Here it is: Replace the income tax as soon as possible with an excise tax, with a national sales tax. From time to time, in future postings, I will expand on this and show its benefits. But for now, answer this question for me: Why do we tolerate telling the government how much we earn? And don’t you dare say, “It’s the law!” because this is a law that we must change.