America: Land of the (Not Really) Free

Recently, President Donald Trump marked the tax deadline by having DoorDash bring McDonald’s meals to the White House. This gesture aimed to spotlight the introduction of tax-free tips. Eliminating tax on gratuities was a component of the 2025 Big Beautiful Bill (BBB).

As the sponsor behind the initial No Tax on Tips legislation presented in Congress, I was naturally glad to witness this tax reform included within the BBB. The legislation also offered beneficial tax adjustments like removing taxes on overtime pay and prolonging the 2017 tax reductions. Regrettably, it simultaneously raised federal expenditures and debt levels.

Advocates for the income tax implicitly accept the notion that rights are granted by the government and can be withdrawn at its discretion. The inception of the income tax represented a shift away from the conviction that individuals possess inalienable rights bestowed by the Creator.

Hence, those who embrace natural rights must oppose income taxation. Additionally, when the central bank diminishes the dollar’s value—resulting in reduced purchasing power through covert inflation—it infringes upon the people’s rights.

The income tax system’s denial of natural rights is clearly demonstrated by withholding, which prioritizes the government’s claim on an individual’s income. The government may then return some of this via what it terms a refund. However, refunds traditionally occur when a business returns a customer’s payment due to dissatisfaction, not when a thief returns part of what was stolen.

Withholding was introduced as a temporary wartime tactic during World War Two but persists decades later.

Early in his career, Milton Friedman contributed to the government’s development of withholding. Later, he became a leading free market advocate and sought to make amends for this by opposing the military draft.

The draft represents one of the starkest rejections of the Declaration of Independence’s principles. It grants the government authority to compel young men—and possibly women—to serve in the military and face combat. Contrary to some progressive views, support for the draft cannot be justified by allowing service alternatives.

Although the U.S. currently lacks an active draft, the Selective Service system is still in place. This year’s National Defense Authorization Act (NDAA) includes a clause enabling automatic registration of all men aged 18 to 25, easing the path for reinstating the draft.

Income taxation, compulsory military service, and other forms of enforced “service” contradict the foundations of a free society and must be resisted by those committed to liberty and peace. As Ronald Reagan stated in a quote adaptable to income taxes, the draft “rests on the assumption that your kids belong to the state…. That assumption isn’t a new one. The Nazis thought it was a great idea.”

Editor’s note: This article was originally published at the Ron Paul Institute for Peace and Prosperity.