States Rights

     This newspaper article refers to California State Senator, Dick Mountjoy's, State Sovereignty and Federal Tax Fund Act (SB1178), which failed due to lack of citizen/ constituent support. Notice that Californian's send $150 billion annually in taxes (not including alcohol and tobacco taxes) to the federal government and get $32 billion returned - with federal strings/chains. It's called 'revenue sharing'... "from those according to their ability, to those according to their needs."

    We live in a Socialist Republic, like the Union of Soviet Socialist Republics.  How does that grab you?  It need not be, and it's never to late to do the right thing for the right reason.  

     Some legislators in the less populated states out west often get back more than they send and were not interested in introducing or supporting the bill.  It doesn't occur to them that the system is Socialist/Communistic, in every sense of the word.

     If you read Phoebe Courtney's book, Beware Metro-Regional Government, you'll discover how this all came about. It's about a two-hour read.   -  Jackie


Bill would park U.S. taxes in California's treasury

San Diego Union Tribune - March 9, 1997

Associated Press

    SACRAMENTO -- If a state senator has his way, California tax-payers soon will send their $150 billion in federal tax dollars not to the Internal Revenue Service, but to state coffers.

    The state will rake in hundreds of millions in interest on the federal tax dollars and will send them to the IRS quarterly -- only if the federal government is not withholding any federal funding, according to a bill introduced in the Senate.

    "I think it will be an interesting bill", the author, Senator Dick Mountjoy, R-Monrovia, said yesterday. "I feel very strongly the federal government is getting too much into the state's business.  This is a way to make money and keep the lion at bay."

    Californians pay about $150 billion a year in federal corporate and individual income and gasoline taxes, according to 1995 figures from the IRS.  They also pay other federal taxes, such as liquor and tobacco.  The federal government, then returns varying amounts of money to California -- an estimated $32 billion this year for programs.

    Congress frequently passes laws that require states to do certain things or lose federal funding, such as pass the Smog Check II program for tougher inspections of polluting cars or lose federal highway funds.  California also could lose $100 million in highway funds if the Legislature fails to pass either a new law suspending driver's licenses of people convicted of drug offenses or a statement that it declares to do so.

    Under Mountjoy's bill, federal tax payments that now go directly to the IRS and other federal tax-collecting agencies would instead go to a new Federal Tax Fund in the state treasury.  That would include federal taxes that employers withhold from their workers.

    The money would sit there collecting interest.  The treasurer would transfer those funds, along with a computer record of everyone who paid, to the IRS quarterly. But if the federal government imposed any sanctions, the treasurer could not transfer the tax dollars.

    His bill was introduced Friday and won't be heard in the Senate Revenue and Taxation Committee for more than a month.  It is sure to draw strong opposition.  - END


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