Position Paper - Tax Reform

Radical Tax Reform

Current U.S. tax policy is tantamount to theft.  The massive confiscation and re-distribution of wealth by the IRS through a graduated, progressive income tax has undermined both the economic and social well-being of the country. Currently, the average American pays over 40% of his income in one form of taxation or another. The League of the South advocates the total dismantling of the present system of taxation, including all federal excise, capital gains, inheritance, and compulsory payroll taxes.

In place of the current system, we propose the following customs duties of no more than 20% on imported goods (a revenue tariff) and a truly voluntary flat tax of no more than 3% on all incomes to be collected annually by the revenue depart-ments of the several sovereign states. This system will have two advantages over and above the obvious ones 1) it will force the federal government to behave responsibly and constitutionally or else risk losing the voluntary tax compliance of its citizens -- we believe that patriotic citizens will happily contribute to a general government that is constitutionally limited and recognises that it is the agent and the states are the principals in the original compact of 1789; and 2) it will force the federal government to acknowledge the sovereignty of the several states or risk having the states withhold tax revenues from Washington. Thus we have two levels of protection against an abusive federal government -- the individual taxpayer and the sovereign state.

On the state level, we propose that there be no taxes levied on housing, land, capital gains, inheritance, and personal and family incomes.  Instead, the states should generate revenue by a modest 2% sales tax on all goods and services sold within their borders and a modest tax on all corporations not headquartered within their borders.

While we cannot and do not wish to bind the individual consciences of our members on the issue of tax compliance, the League, as an organisation, does not advocate any sort of tax evasion.  We are working toward a goal, that if successful, will take care of this issue.  We will spend our time and energy formulating ideas to restructure the present tax system while we operate within the current political system. Moreover, we will also formulate a fair and just tax code for a new Southern nation.

This is a most serious issue. The League must not, and will not become a vehicle for tax protesters. There are other organisations that serve this purpose.  Our goal - Southern independence - must remain uppermost in our minds.  If successful, this will allow us to institute changes that will solve a number of current problems, including the one of unfair taxation.