Without an income tax, how would we pay for roads, military, police, firefighters, and schools?

In these videos, Peymon goes over why the federal income tax is unnecessary for funding essential services like schools, police, and roads, as these are primarily sustained through state and local revenue. The federal government has overstepped its constitutional boundaries, particularly through excessive military spending and what he describes as a lack of legal liability for most American taxpayers. This topic is presented in two distinct formats: a short version that provides a high-level summary of these claims, and a full version that offers much more detailed information and evidence.

Short Video
Full Video

Takeaways

The Reality of Infrastructure and Public Funding

Public services are primarily sustained through local and state revenue streams rather than federal income taxes:

  • Municipal Services: Fire departments, police, and sanitation are funded directly by city taxes and local property levies.
  • The Education Budget: Approximately 92% of the funding for elementary and secondary schools is provided by state and local taxes. The federal government contributes only about 8% of the total budget.
  • Roads and Highways: While often referred to as "federal highways," the vast majority of roads are maintained by state and local governments. Federal highway funds are predominantly sourced from the gas tax (excise taxes on motor fuel) rather than income tax.

Constitutional Structure and State Authority

The United States functions as a union of 50 independent states, each possessing its own executive, legislative, and judicial branches:

  • Limited Federal Power: Under the 10th Amendment, the federal government possesses only specific, narrow powers delegated to it by the states. All other powers remain with the states or the people.
  • State Sovereignty: The states are the primary providers of governance for the individual, retaining jurisdiction over matters ranging from property rights to public health mandates.

Global Military Expenditure and Accountability

Current federal spending on defense significantly exceeds that of all other nations, suggesting a shift from a defensive posture to a global administrative one:

  • Budgetary Scale: The United States spends more on its military than the next ten countries combined, including China, Russia, and India.
  • Financial Transparency: Historical audits have identified trillions of dollars in federal military spending that cannot be tracked or accounted for, representing a significant portion of the total national budget.

Legal Application of the Internal Revenue Code

A literal reading of the law reveals specific boundaries for federal income tax liability:

  • Restricted Jurisdiction: Federal income tax liability is legally limited to citizens or residents of Washington D.C., U.S. territories (such as Guam and Puerto Rico), and federal government employees.
  • Voluntary Participation: Most residents of the 50 states are not legally mandated to pay federal income tax. The current system relies on public belief in a "patriotic duty" or a general lack of education regarding the specific "liability" language in the tax code.
  • Financial Sovereignty: Reclaiming the money typically lost to federal withholding allows individuals to improve their standard of living, increase personal savings, and invest directly back into their local communities.