I usually never wade into politics. As an entrepreneur and business commentator, I stick to topics like growth, strategy, and personal success. But today I’m breaking my own no-politics rule. Why? Because the stakes are too high to stay silent. We need to talk about an idea so bold and provocative that it demands our attention: eliminating the IRS and replacing it with something entirely new. Strap in – this isn’t business as usual, but it’s a conversation we must have.
From IRS to ERS: A Radical Proposal from Washington
Believe it or not, the current administration is floating a plan to abolish the Internal Revenue Service – yes, eliminate the IRS outright – and replace it with an External Revenue Service (ERS). What on earth is an ERS? The concept is basically to collect America’s revenue from external sources rather than from your paycheck. In plain language, that means funding the government with tariffs, duties, and taxes on foreign imports instead of taxing our income ( Trump considering announcing “External Revenue Service,” sources say – CBS News). It’s a play on the IRS’s name – and a direct shot at the most hated agency in America.
This isn’t some fringe idea; it’s being talked about in the halls of power. One top official put it bluntly, the goal is “to abolish the Internal Revenue Service and let the outsiders pay” (No More IRS? House Republicans Push for Consumption-Based Tax System | Kiplinger). Imagine that: rather than Uncle Sam taking a chunk out of your earnings, the government would raise money from tariffs on goods coming into the country (think imported products from China and elsewhere). The proposed ERS would be the arm of government handling those external taxes. It’s a bold gambit to fundamentally shift how we fund our nation – and it has a lot of people cheering and plenty of others skeptical.
The IRS’s Chokehold on Workers and Small Businesses
Why target the IRS? Spend five minutes talking to everyday taxpayers or small business owners, and you’ll have your answer. The IRS has a chokehold on the American worker and entrepreneur. Every year, we sweat through complex tax forms, navigate arcane rules, and live with the fear of audits or penalties. For small businesses especially, the IRS isn’t just an agency – it can feel like an adversary that strangles growth with paperwork and punishing regulations.
Consider these facts about the IRS’s burden on Americans:
- Americans waste time and money: Collectively, Americans spend nearly 8 billion hours a year on tax compliance, equivalent to 3.8 million people working full-time on nothing but taxes. That translates to about $550 billion drained from our economy annually in lost productivity and compliance costs (IRS Tax Compliance Costs the US Economy $546B Annually). All that time and money could be spent on productive work, innovation, or personal life – but instead it’s eaten up by the tax monster.
- Small businesses suffer disproportionately: The IRS’s own taxpayer advocate found that a typical small business spends 82 hours and about $2,900 each year just on tax compliance (Harris Wants To Make Tax Filing Easier For Small Businesses | Tax Policy Center). That’s two full workweeks lost to filling out forms and paying accountants. For a scrappy entrepreneur or a family business, 82 hours of hassle and nearly three grand in costs is huge. It’s the difference between making another sale, landing a new client, or spending time with family – versus wrestling with tax code schedules and receipts.
This chokehold is very real. I’ve seen promising startups stall because the founders were tangled up in tax filing issues. I’ve seen seasoned business owners stay small because they fear growing will just mean more IRS red tape and risk. We have a tax code no one truly understands (not even the IRS agents, if we’re honest) and an agency that strikes fear into honest citizens. Enough is enough. If ever there was a setup begging for disruption, it’s this one.
Entrenched in Greed and Bureaucracy – Can We Really Get Rid of the IRS?
Now, let’s address the elephant in the room: skepticism. You might be thinking, “Sure, eliminating the IRS sounds great, but they’ll never let it happen.” I hear you. The IRS has had over a century to entrench itself, and it’s backed by a massive bureaucracy and a lot of greed for our dollars. Washington has grown addicted to the trillions flowing in every year. A giant federal agency like the IRS doesn’t dismantle itself willingly.
Think about it – the IRS employs tens of thousands of people. Entire industries of tax lawyers, accountants, and lobbyists thrive off the complexity and fear the IRS creates. Greed isn’t just the money the IRS collects; it’s also the power and control that come with it. Bureaucrats and politicians have long used the tax code to pick winners and losers, hand out favors, and punish enemies. That kind of power is hard to relinquish. There’s an army of stakeholders who don’t want to see the IRS go away: those on its payroll, and those who profit from navigating or manipulating the tax system. They will fight tooth and nail to preserve the status quo.
So yes, I’m skeptical, too. The idea of an ERS sounds amazing – shift the burden off us and make foreign companies and imports pay more of the bills. But the cynical part of me wonders if this is just election season talk. Bureaucracy has a way of protecting itself. Even if the plan gains traction, expect scare tactics about budget deficits, legal challenges, and endless political wrangling. It will take nothing short of political willpower on steroids to actually abolish the IRS. But just because it’s hard doesn’t mean we shouldn’t push for it. Big, important changes are never easy.
How a “Temporary” Measure Became Permanent – A History Lesson
Let’s step back and look at how we got an IRS in the first place. It turns out the IRS is a case study in how “temporary” government measures have a way of becoming permanent. During the Civil War, President Lincoln desperately needed funds to fight the rebellion, so in 1862 the government created a temporary income tax and the first version of the IRS (then called the Bureau of Internal Revenue) to collect it. This tax was supposed to expire once the emergency passed . In fact, after the war, the tax was allowed to lapse by 1872. So far, so good – a temporary crisis measure that actually ended when the crisis did.
But fast forward a few decades: in 1913, the government brought the income tax back from the grave. They passed the 16th Amendment to the Constitution, which opened the floodgates for a permanent federal income tax (Was the First Income Tax in Civil War Supposed to Be Temporary?). What was sold in the 1860s as a short-term fix for wartime became enshrined as a permanent reality for every American thereafter. The IRS as we know it was born in 1913, and ever since, that “temporary” tax has been anything but temporary. Funny how that works, right? Give the government an inch and it takes a mile (and a century).
And it’s not just the income tax. History is full of examples of “temporary” taxes or programs that never die. Case in point: the Spanish–American War was a conflict in 1898 that lasted only a few months. To pay for it, the feds slapped a small “temporary” excise tax on telephone service – basically a tax on rich folks who owned telephones back then. Well, the war ended in 1898… but that phone tax stuck around for over 100 years! In fact, it was only in 2006 that the IRS finally discontinued that Spanish–American War telephone tax (Telecom tax imposed in 1898 finally ends – CNET). Incredible. A tax for a war that happened in the 19th century was still shrinking Americans’ wallets in the 21st century. This is what governments do: once they get used to a revenue stream, they hold on tight.
Why bring up this history? Because it should light a fire under us. If we don’t seize this chance to overhaul our tax system and remove the IRS’s grip, we might never get another opportunity. “Temporary” solutions can become permanent problems. Conversely, a temporary window for change (like a new administration with a big idea) can close quickly. The lesson: act fast and stay vigilant if you want real change.
Lifting the Burden: Envisioning a Post-IRS America
Now, let’s dare to dream for a moment. What would a world without the IRS look like for regular folks and entrepreneurs? Imagine keeping 100% of your paycheck aside from maybe a simple sales tax or a small tariff-induced price adjustment on imported goods. Imagine April 15 being just another spring day, not a national day of dread. Think about the boost in freedom and productivity if we no longer had to pour billions of hours into tax compliance or live in fear of making an honest mistake on a form.
Replacing the IRS with something better – whether it’s the ERS or another simplified system – could lift a huge weight off our shoulders. The External Revenue Service idea specifically would mean the bulk of federal revenue comes from outside sources. In theory, that encourages American industry (since Made in USA would have zero tariff, while imports pay their fair share) and it lets everyday Americans go about their lives without Big Brother scrutinizing their income. Small businesses could focus on business, not bookkeeping gymnastics to satisfy the IRS. Entrepreneurs could reinvest their time and money into growth, jobs, and innovation – instead of into tax avoidance schemes or CPA fees.
There are other ideas out there too. Some advocate a simplified flat tax or a national sales tax (sometimes called the Fair Tax) to replace the income tax. The common thread is simplicity and fairness – no more 1,000-page rulebooks, no more army of auditors micromanaging the nation. Whichever path we choose, the end goal is the same: empower the people by letting them keep more of their money and unleash the economy by removing the shackles of a bloated tax code.
Critics will ask, “But how will we fund the government without income tax?” The answer: there are plenty of ways – from closing loopholes, to cutting waste, to smartly using tariffs and consumption taxes. The beauty of the ERS concept is it flips the script: let outsiders (foreign companies, exporters to the U.S.) contribute more, while relieving the burden on insiders (you and me). Will there still be taxes? Of course – we need to fund the military, infrastructure, etc. But the collection could be streamlined and kept out of our personal lives. No more IRS agent as the unwanted partner in every business and every paycheck.
A Call to Action: Vote for Change and a Freer Economy
Here’s the bottom line: talking about eliminating the IRS is no longer taboo. It’s on the table, and it’s gaining traction. But talk alone won’t get us there. We have to take action. If you’re an entrepreneur, a taxpayer, or just someone who values freedom and prosperity, now is the time to make your voice heard. Support leaders who are bold enough to challenge the status quo. Let your representatives know you’ve had it with the IRS’s chokehold and you want a simpler, fairer system. Share your stories of how the IRS and the convoluted tax code have affected your life and business – put a human face on the cost of this bureaucracy.
Most importantly, vote for change. Politicians need to know that we, the people, demand a freer economic system. This isn’t about left or right, it’s about lifting a burden off the backs of hard-working Americans. It’s about trusting people to spend and invest their own money better than any government agency ever could. When election time comes, remember which candidates stood up to say “yes, we can find a better way than the IRS.” Hold them to that promise.
I broke my no-politics rule today because I believe this issue transcends politics – it’s about liberty and opportunity. The IRS had its time, over a hundred years of it. Maybe it made sense in an earlier era; maybe it never did. Either way, we can do better now. Eliminating the IRS and freeing Americans from its yoke would be a game-changer for every worker and every business in this country. So let’s grab this moment. It’s time to reclaim our time, our money, and our economic freedom. It’s time to send the IRS into the history books and embrace a future where we run our businesses – not the IRS.
Let’s vote for it, let’s fight for it, and let’s make it happen.