Posted: Apr 24, 2005 By: Claude Cahen

Comment: Gentlemen....
Since the writer of the LA Times wrote in her collumn
that you could (possibly) be open and receptive to
some ideas here is my "2 cents comment"
regarding your endeavour of changing the tax code....

Let me start by congratulating all of you... Indeed
by tackling this problem of enormous complexity you
may create more than a reform but instead you really
may start a real "quiet" revolution which will
reverbate all over the world.....
Let me surmise my position:
The so- called "Income Tax" is certainly the most
unfair of all the taxation systems because it taxes
the "Human labor"... Labor in itself is the opposite
of comfort and relaxation... Depending of one's line
of work ,which can be more or less demanding, the
experience can be more or less (physically and
psychologically) taxing on the individual performing
his line of duty... Financially taxing the product of
this labor is the equivalent of kicking an already
knock down adversary..... It's basically "UNFAIR". Its
the equivalent of the famous "Double Whammy".
..... I realized , reading different publications
that nobody comes with the most important figure:
What is the percentage of "Direct taxes " compared
to "Indirect taxes " in the Federal budget ?
Only when this question will be properly
answered shall we be able to have the proper basis for
an open discussion: "Is this (Evil) income tax
necessary to fill the vault of the federal
Or, can we get by , by resting only on a
consumption tax?
In my view, this is very possible...And feasable!
For exemple in France where I studied economy the
direct income tax represented only 4% of the global
budget of the Nation .... In other words 96% of the
budget was covered by the "Added Value Tax" and other
excise taxes.... Nobody knew it! The Socialist
Government did every it could to avoid the
dissemination of such an information... The reason
rests on the fact that the "Income Tax" has a
political function : It's an EGALITARIAN tool which
has nothing to do with the economic needs of a
country but which exist just to make the poors believe
that there is a "Social Equity" guaranteed and
enforced by the Government. The income tax system
becomes an electoral tool in the hand of the
government. To gain more voices on electoral days ,
the government increases the income tax on the
This indeed is pure demagogery , but it works well
for the politicians who want to stay in power...And
this is part of the political game in Western Europe,
more specifically in France.... The result of this
situation ( This added to many more, which we cannot
adress in this forum) is a complete stagnation of the
European economy, a huge unemployment and a total
demoralisation of the Nation....
Historically speaking : The system of direct
taxation of the product of the labor was instaured in
the U. S. right after World War One, and started as a
" Voluntary Tax" Paid only by the most afluent
Wouldn't it be the time to reverse back to this
pre-war era, and convert to an indirect system of
It seems morally justified, econnomically viable and
politically doable.
The time of income tax has passed ,it's now time
to literally "Revolutionise" the system... A simple
change in the rate of taxation will NOT do it.... The
U.S. has to take a giant step and indeed will lead
the world in a general revision of the different tax
codes, all over the world.
Again :American true democracy will lead the
world... BY EXEMPLE and not by FORCE. It will be a
huge move!
A drastic revision and simplification of the
US tax code, leading toward the suppression of the
totally unfair "Income TAX" would probably remain in
history as the most significant advance and democratic
move of the last one hundred years.

Thanks for your attention
Claude R. Cahen MD

Best regards