The (only) daily newspaper in Tulsa, now owned by a Berkshire Hathaway subsidiary, has a feature of things in years past that appeared on that particular date. Included is usually an excerpt from one of the columns by Will Rogers. A recent one particularly struck me, even though it appeared in the June 9, 2015, issue it was dated April 17, 1932. It is possible that my eyes actually read the original, but memory cannot recall.
The quote actually read: “There was no doubt that the ones with money were about the only ones that could pay anything, but after all these darn rich ones are the ones the rest of us got to live off of. If the government takes all their money in taxes, it don’t leave any for their folks that work for ‘em.” Although a lifelong (maybe yellow dog) Democrat (possibly by heredity), his comments often contained a great deal of common sense. After all, if one doesn’t have money, how can he/she/it make payrolls for those depending on a paycheck to live?
The often repeated statements coming from many professional politicians in campaign mode, as well as in office, ends up meaning “tax the rich who are not paying their fair share.” That is just what the present income tax does, since it is graduated so that as incomes increase, the tax rate goes up. And when government takes something in taxes, it costs 90 cents of every dollar to run the government bureaucracy
When Amendment XVI, ratified in 1913 on February 3, reads: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” It has been documented that the argument put forth to get the state legislatures to vote for ratification was that the income tax would be one-half of one percent of incomes over a large amount, possibly $100,000.
They lied, didn’t they?
That one sentence amendment opened the door wide for the establishment of the IRS and present tax monstrosity we suffer with each year. In my mind, the whole mess, including the amendment, should be repealed and replaced with something better and more fair.
There was absolutely no provision in the body of the Constitution for a tax on incomes or on actual assets. Originally, up until World War II, income taxes were due and payable on or before March 15 of the following year and some had to go to the bank to borrow (on short-term loans) to pay the income tax due then. During the War, the FDR administration, with a co-operative Congress totally controlled by Democrats, instigated the payroll deduction system now used. It was to have ended when the war ended.
Didn’t do it did they?
So those with great wealth found that they could set up trusts to fund their childrens’ needs and their progeny can now escape much of the bother of income taxes.
A fairer and more reasonable method for revenue, and one that would bring those into the taxpaying realm, would be the proposed Fair Tax, which requires repeal of the XVI Amendment before implementation. Space here does not allow for a complete explanation of this proposed alternative, but under it there would be a consumption tax on all purchases of new items collected by the vendor and remitted to the state taxing agency for forwarding to the Federal Treasury Department, less a small service fee. Further, it provides for a “prebate” for every citizen of the locality estimated tax for the necessities of life, paid in advance, thus the very poor would pay no tax and none of us would have to file income tax returns.
The savings would be in the multi-billions of dollars!! The bill has been in Congress for some time, but the communist/socialist members (and leaders) won’t pass it.