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Date: Mon, 24 Nov 1997 05:21:06 -0800
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: National Sales Tax HOAX (fwd)

>From:          "Gordon Phillips" <gordphil@gis.net>
>Date:          Fri, 21 Nov 1997 17:22:17 +0000
>Subject:       National Sales Tax HOAX
>Dear Fellow Americans:
>If you have been seduced by the meretricious appeal of a National 
>Sales Tax, the following should reverse your thnking. This is 
>critical information to repost far and wide. Save this message and 
>fire at will at anyone advocating the NST. - Gordon Phillips
>                          * * *
>The Legislative Exchange Association 
>- Drafting, Editing and Research Service
>Publisher of: American Leadership Magazine
>P.O. Box 3245, Frederick, MD 21705  
>Phone: (301) 293-0001               
>ISSUE BRIEF #12: The National Sales Tax Hoax
>Research Provided by:
>P.O. Box 0786; Greenbelt, MD  20768; Phone 301-345-5689
>Author: John William Kurowski
>There is an important distinction to be made concerning a "national
>sales tax" as proposed to replace current taxation, and the method of
>taxing consumption as intended by the Founding Fathers. 
>A national sales tax would give Congress an across the board
>percentage of our economy by laying an internal tax, whether such
>revenue is needed or not. 
>The Founder's method of taxing consumption began with an external tax
>on imports at our water's edge, and was extended to reach internal
>consumption only if external taxation were found insufficient.
>It is important to study our nation's first revenue raising Act to
>understand the wisdom of the Framers. 
>The Act was "... in a certain sense a second Declaration of
>independence; and by a coincidence which could not have been more
>striking or significant, it was approved by President Washington on
>the fourth day of July, 1789." [See, Twenty Years of Congress, James
>G. Blaine, 1884, Vol. 1, page 185]
>Madison, in discussing this Act before Congress, clearly pointed out a
>very important principal of American's original tax reform package: 
>"...a national revenue must be obtained; but the system must be such a
>one, that, while it secures the object of revenue it shall not be
>oppressive to our constituents." 
>The Act imposed taxes, not on American constituents, but on "goods
>wares and merchandise" imported into our Country by foreign nations,
>and not one dime was raised under the Act by any internal taxes.  
>Internal taxes were frowned upon by the Founder's especially when a
>national revenue could be had by requiring foreign nations to pay for
>the privilege of doing business on American's soil!
>Jefferson, in his Second Annual Message(December 15, 1802) states:
>"In the department of finance it is with pleasure I inform you that
>the receipts of external duties for the last twelve months have
>exceeded those of any former year, and that the ratio of increase has
>been also greater than usual. This has enabled us to answer all the
>regular exigencies of government, to pay from the treasury in one year
>upward of eight millions of dollars, principal and interest, of the
>public debt, exclusive of upward of one million paid by the sale of
>bank stock, and making in the whole a reduction of nearly five
>millions and a half of principal; and to have now in the treasury four
>millions and a half of dollars, which are in a course of application
>to a further discharge of debt and current demands."
>Imagine...all this in consequence of "external duties!"
>In Jefferson's Second Inaugural Address (March 4, 1805), he points
>"At home, fellow citizens, you best know whether we have done well or
>ill.  The suppression of unnecessary offices, of useless
>establishments and expenses, enabled us to discontinue our internal
>taxes. These covering our land with officers, and opening our doors to
>their intrusions, had already begun that process of domiciliary
>vexation which, once entered, is scarcely to be restrained from
>reaching succes-sively every article of produce and property.  If
>among these taxes some minor ones fell which had not been
>inconvenient, it was because their amount would not have paid the
>officers who collected them, and because, if they had any merit, the
>state authorities might adopt them, instead of others less approved." 
>"The remaining revenue on the consumption of foreign articles, is paid
>cheerfully by those who can afford to add foreign luxuries to domestic
>comforts, being collected on our seaboards and frontiers only, and
>incorporated with the trans-actions of our mercantile citizens, it may
>be the pleasure and pride of an American to ask, "what farmer, what
>mechanic, what laborer, ever sees a tax-gatherer of the United
>The national sales tax idea would do ill to our nation as it is an
>internal system of taxation which ultimately increases the cost of
>goods manufactured on American soil; burdens the American Citizen in
>its collection; and, is to be paid BY the farmer, mechanic, laborer,
>etc. who will continue to see the intru-sion of the "tax gatherer of
>the United States" if such a system is adopted!
>It is also important to note how imposts and duties (external
>taxation) were successfully used to encourage domestic manufacturing
>and assist in building a strong industrial base.  
>The first revenue raising Act imposed an across-the-board tax on
>imports which was higher for imports shipped in foreign owned foreign
>built vessels, and dis-counted the tax for imports arriving in
>American owned American built ships: 
>"a discount of ten percent on all duties imposed by this Act shall be
>allowed on such goods, wares, and merchandise as shall be imported in
>vessels built in the United States, and wholly the property of a
>citizen or citizens thereof."
>This skillful use of external taxa-tion gave American ship builders a
>home-town advantage and predictably resulted in America's merchant
>marine becoming the most powerful on the face of the planet.  
>In addition, our national treasury was filled by foreigners paying for
>the priv-ilege of doing business on American soil.
>But this was when members of Congress, and those running for Office,
>put American interests first and would have considered NAFTA, GATT and
>the WTO as acts of sedition, and would have tarred and feathered those
>promoting such surrender of America's soverignity.
>A national sales tax plan which omits external taxation as a principal
>source to fill our national treasury, is in fact a surrender of
>national sovereignty to the advantage of foreign interests!
>It is quite obvious the American People are fed up with the manner in
>which Congress now raises its revenue, and the system will be
>changed...one way or another.  
>But if income taxation is abandoned and the Founders original tax plan
>is returned to, including the use of impost and duties at our water's
>edge as a principal means to fill our national treasury, a powerful
>group of international financiers and investors will have their gravy
>train cut off.  
>Perhaps that is why a flat tax along with a national sales tax has
>been offered as "tax reform" by the establishment ... each proposal
>cleverly perpetuates a burdensome system of internal taxation as the
>principal means to raise revenue, and leaves the international gravy
>train in tact by not resorting to external taxation to meet the
>expenses of Congress as was intended by the Founders!
>In closing, many of the same people who promoted the NAFTA, GATT and
>the WTO (the free trade crowd) are now promoting various forms of tax
>reform ... each proposal cleverly maintaining internal taxation as a
>principal means to raise a national revenue.  
>Let us continually keep in mind the important distinction between
>internal and external taxation while working toward the elimination of
>income taxation and strive to return to the Founding Father's original
>tax preform package which provided the means allowing America to
>become the economic envy of the world. 
>Harold Thomas

Paul Andrew Mitchell, Sui Juris      : Counselor at Law, federal witness 01
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