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A tax resister resists or refuses payment of a tax because of opposition to the institution collecting the tax, or to some of that institution’s policies. Often tax resistance comes from pacifists, conscientious objectors or members of religious groups, such as the Quakers, who choose not to fund violent government activities. It has also been a technique used by nonviolent resistance movements, such as India’s campaign for independence led by Mahatma Gandhi. Unlike tax protesters (who deny that the legal obligation to pay taxes exists or applies), tax resisters typically recognize that the law obliges them to pay taxes but still choose to resist taxation. History of tax resistance Motives Tax resisters are typically motivated by disagreement with the policies of the government or institution that is collecting the tax. For some, this may include opposing that government or institution entirely, and not just specific policies (for instance, Gandhi’s opposition to British Imperial rule). Anarchists who resist taxes oppose anybody or any institution that demands tribute. Christian anarchists in the pacifist tradition resist taxes from any government that funds a violent civil defence force or military. Some radical democrats suggest that a right to deny tax payments is in the spirit of democracy, giving people a veto right and forcing government spending to be done with the consent of the governed. What a tax resister hopes to accomplish may be personal or political or some combination of the two: Methods There are many methods of tax resistance. In war-tax resistance circles in the United States it is sometimes remarked that there are as many ways to practice tax resistance as there are resisters. Redirection Some tax resisters refuse to pay all or a portion of the taxes due, but make an equivalent donation to charity. In this way, they demonstrate that the intent of their resistance is not selfish and that they want to use a portion of their earnings to contribute to the common good. For instance, Julia Butterfly Hill resisted about $150,000 in federal taxes, and donated that money to after school programs, arts and cultural programs, community gardens, programs for Native Americans, alternatives to incarceration, and environmental protection programs. She said: I actually take the money that the IRS says goes to them and I give it to the places where our taxes should be going. And in my letter to the IRS I said: “I’m not refusing to pay my taxes. I’m actually paying them but I’m paying them where they belong because you refuse to do so.” The National Campaign for a Peace Tax Fund works to legalize a form of conscientious objection to military taxation via redirection. Its mission statement says it “advocates for US federal legislation enabling conscientious objectors to war to have their federal income taxes directed to a special fund which could be used for non-military purposes only.” Refusing specific taxes Some resisters resist only certain taxes, either because those taxes are especially noxious to them, or because they present a useful symbolic target, or because they are more easily resisted. For instance, in the United States, many war tax resisters resist the telephone federal excise tax. The tax was initiated to pay for the Spanish-American War and has frequently been raised or extended by the government during times of war. This made it an attractive symbolic target as a “war tax”. Such refusal is relatively safe: because this tax is typically small, resistance very rarely triggers significant government retaliation. Phone companies will cooperate with such resisters by removing the excise tax from their phone bills and reporting their resistance to the government. Refusing to pay The most dramatic and characteristic method of tax resistance is to refuse to pay a tax – either by quietly ignoring the tax bill or by openly declaring the refusal to pay. Some tax resisters resist only a portion of the taxes due. For instance, some war tax resisters refuse to pay a percentage of their taxes equivalent to the military percentage of the government’s budget. Other resisters withhold a symbolic amount – for instance, in the United States, some might hold back $17.76/17.76% (symbolic of the revolutionary year 1776) or $10.40/10.4% (in tribute to Form 1040, which is used in federal income tax returns). In other countries, similar amounts symbolic of a certain year in their country's history (eg. 1788 or 1901 in the case of Australia) or a tribute to the form used for income tax returns in the country are held back in a similar fashion. Paying under protest Some taxpayers pay their taxes, but include protest letters along with their tax forms. Others pay in a protesting form – for instance, by writing their check on a toilet seat or a mock-up of a missile. Others pay in a way that creates inconvenience for the collector – for instance, by paying the entire amount in low-denomination coins like nickels or pennies. Tax avoidance A resister may lower the tax due by using legal tax avoidance techniques. For instance, one way to lower the tax due is by changing one’s tax status through incorporation, or establishing an offshore company, trust, or foundation in a tax haven. Tax evasion A resister may lower the tax due through illegal tax evasion. For instance, one way to avoid the income tax is to participate in the underground economy – earning money that is never declared to the government. Reducing expenditure and income Other tax resisters change their lives and lifestyles so that they owe less tax. For instance; to avoid an excise tax on alcohol, a resister might home-brew beer; to avoid excise taxes on gasoline, a resister might take up bicycling; to avoid income tax, a resister might decide to take in less income and take up a simple living or freegan lifestyle; and so forth. These methods differ from tax evasion in that they stay within the tax laws, and they differ from tax avoidance in that the goal is to pay as little tax as possible rather than to keep as much post-tax income as possible. Arguments for tax resistance There are a variety of arguments made for tax resistance. Some of the arguments are as follows: Arguments against tax resistance Many arguments can be made against the tactic of tax resistance. Most basic, of course, is from those who support the entity collecting the tax and feel that other people should as well. But even those who are sympathetic with the tax resister’s complaints may question the methods. Some common arguments against tax resistance are: Quotations See also Notes | |||||||
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