I did a little digging into this quote last week, and here is the quote from the Grace Commission:
The commission found that: one-third of all income taxes is consumed by waste and inefficiency; one-third is not collected due to the underground economy; and 100 percent of all income taxes are absorbed by interest plus government contributions to transfer payments.
The part many, myself formerly included, leave out is, "plus government contributions to transfer payments."
Examples of certain transfer payments include welfare (financial aid), social security, and government making subsidies for certain businesses (firms).
There's also this. So, I'm not sure if transfer payments would count as services the public expects.
Resistance to additional income taxes would be even more widespread if people were aware that:
One-third of all their taxes is consumed by waste and inefficiency in the Federal Government as we identified in our survey. Another one-third of all their taxes escapes collection from others as the underground economy blossoms in direct proportion to tax increases and places even more pressure on law abiding taxpayers, promoting still more underground economy - a vicious cycle that must be broken.
With two-thirds of everyone's personal income taxes wasted or not collected, 100 percent of what is collected is absorbed solely by interest on the Federal debt and by Federal Government contributions to transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government.
I'm a serial entrepreneur and liberty activist from Texas!
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