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Category: Taxation

(feel free to mail this page)

(Links to documents appear after the summary.)

The governments of this world collect taxes on the basis of fear, which the bureaucrats call "voluntary compliance" in the United States. This compliance is based on one fact: the public believes that non-payers will be discovered, prosecuted, and convicted.

In 2000, no one will believe this of any tax collecting agency that is computerized. Tax collectors will be blind above the county level -- and maybe even there, too.

When the computers shut down or become unreliable, the tax collectors' ability to collect the money will be drastically hampered. Businesses will be failing all over the world. Tax payments will slow. The governments' deficits will grow.

In the United States, salaried people will report more dependents in 2000. The sign that the Internal Revenue Service is losing control will be a law prohibiting anyone from adding to the number of dependents without proof.

Then workers will choose to become independent contractors, in order to stop sending in money. This will be made illegal.

Governments will be forced to go to the central banks for more money. But the banking system will be paralyzed in late 1999 and beyond.

Central banks cannot print money fast enough to make up for a breakdown in checking. There will be mass deflation. Then everyone falls into a lower income tax bracket.

Only one thing may stop the growth of the deficit in 2000 and beyond: the breakdown of all government computers, so that they cannot mail out checks. We may even get a balanced budget: nothing in, nothing out.

In short, the end of big government is in sight. When tax collectors can't collect the taxes because they cannot track taxpayers, voluntary compliance will end.There will be a collapse of revenue for every government in 2000. It will get worse in 2001.

Keep this conclusion in mind: "If the computers are not compliant in 2000, taxpayers won't be, either."

The Internal Revenue Service of the United States is probably typical of most national tax collection agencies. Its computers are not 2000-compliant, and there is little likelihood that they will be in 2000. The system is bordering on collapse now. In 2000, it will collapse.

If you doubt this, read the IRS document I have posted under the title, "IRS Issues SOS: Shutdown in 2000."

Updated - Subject

23-Apr-97   The IRS's #1 Problem: 100 Million Lines of Code
26-Jun-97   Kiss the IRS Goodbye
28-Jul-97   God-Fearing Tax Collector Says, No Problem!
30-Jul-97   Australian Tax Collector Says He Doesn't Know
16-Aug-97   Ex-IRS Programmer says IRS Has No Big Problem
21-Aug-97   IRS Issues SOS: Shutdown in 2000
21-Aug-97   Revenge of the Codeheads: IRS, Beware!
30-Aug-97   IRS Spokeswoman Says, No Big Problem Here! Trust Me.
25-Sep-97   IRS Asks for $600 Million More to Fix Y2K
08-Oct-97   Government May Give IRS $377 Million for Y2K
22-Oct-97   The IRS: Another Distress Warning
27-Oct-97   IRS Computer Problems Escalate: 1997 Tax Act
27-Oct-97   IRS: 40 Million Lines of Code?
27-Oct-97   IRS: 70 Million Lines of Code?
27-Oct-97   IRS: 102 Million Lines of Code?
27-Oct-97   IRS: No Problem, Says Senior IRS Bureaucrat
31-Oct-97   Programmer Analyzes IRS's Request for $850 Million
05-Nov-97   IRS Is Not Telling Congress the Full Story: Yardeni
27-Dec-97   IRS Is Losing Programmers
08-Jan-98   Can the IRS Make It? The Challenge
13-Jan-98   Australia's Tax Collector Is Facing Major Problems
06-Feb-98   IRS's CIO Resigns
20-Feb-98   IRS Must Get Everything Fixed by 1999
28-Feb-98   IRS PC'S: Not Likely to be Fixed
02-Mar-98   Tested by Jan. 31, 1999 -- How?
02-Mar-98   IRS Promises to Be 100% Compliant and Tested by Jan. 31, 1999
02-Mar-98   IRS Retroactively Condemns Rival Correction Strategies
07-Apr-98   IRS Needs $850 Million to Fix Its Massively Complex System
07-Apr-98   IRS Ex-CIOs Say: IRS Will Make It
09-Apr-98   IRS Commissioner Warns of Total Economic Collapse
09-Apr-98   IRS Loses Programmers, Offers 10% Raise
16-Apr-98   IRS Is 55% Finished (Not Counting Testing), Says IRS Official
18-Apr-98   IRS: Millions of Noncompliant Connections
08-May-98   Senate Votes 97-0 to Rein in the IRS
09-May-98   IRS Commissioner Warns: IRS May not Make the Deadline
18-May-98   Breakdown of IRS System, Says Tax Specialist
28-May-98   Treasury Secretary Rubin Promises a New, Improved IRS

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