Income tax and why it does not work!

“Our politicians wanted to embrace Marx and did. They created the progressive income tax and passed that in 1913 altering the Constitution cheering that Marx was now far more brilliant than Thomas Jefferson, Ben Franklin, James Madson, or anyone else that was there. They saw the seriousness of what took place with direct taxation that always eliminated freedom and liberty. Why we have any Presidents on our currency rather than Karl Marx is a mystery.” Martin Armstrong

Why is it important to get rid of income tax?

Getting rid of income tax would have a major and I mean a very major effect on the USA. But first here is a little history on income tax.

Progressive income tax was first suggested in Marx’s “communist manifesto” as 1 of the 10 planks to help destroy capitalism. Some of the other planks were a national bank with complete control (the fed), creating entities like the Dept of Agriculture., Bureau of land Management etc, but this is another part of the story.

The Progressive platform of 1912 was mostly written by Theodore Roosevelt and for most of my life I thought of Roosevelt as my hero until I started really delving into his political history and have come to realize that he was a closet Marxist. The following quote comes from the Progressive or Bull Moose platform of 1912
                 “We believe in a graduated inheritance tax as a National means of equalizing the obligations of holders of property to  Government, and we hereby pledge our party to enact such a Federal law as will tax large inheritances, returning to the States an equitable percentage of all amounts collected. We favor the ratification of the pending amendment to the Constitution giving the Government power to levy an income tax.”

As you can see this is what we now call “income redistribution” and too many people it sounded like a great idea in 1912. Also it was a great way to control the people from moving up the wealth ladder and to protect the elite from being pushed out of the way by new money and this included the news media Mongols at that time. To get 2/3rds of the states to ratify it as an amendment a promise was made that this tax would not ever go over 7% and it would be progressive. The personal income tax in its present form was first levied by the federal government in 1913. The rate was 1 percent on taxable net income above $3,000 ($4,000 for married couples), less deductions and exemptions. It rose gently to a top rate of 7 percent on incomes above $500,000. The law was class legislation and deliberately so. By 1918 the highest rate was 77% and this really stifled growth and by 1920 the USA was in a very major recession with unemployment hitting over 11% in 1921. By 1925 the highest tax rate was dropped to 25% and then up too 94% during ww2 and didn’t drop drastically back down to 28% till 1988.

Ok what does income tax do for the federal government and why do they desire it?

First it lets them create all kinds of agencies like the Department of Commerce and Labor, Department of Interior, the Environmental Protection Agency, Bureau of Land Management, Bureau of Reclamation, Bureau of Mines, National Park Service, Department of Education , etc and etc. This lets congressmen funnel the money back to their respective states in order to buy votes or to pay off supporters. We have all seen how this pork barrel system works.

Second, they can use it to blackmail separate states into doing something just to get their “fair share” back. i.e. the 55 mph speed limits in the late 1970’s or grants to colleges and public schools as long as they stick to certain rules, like the “no child left behind”. In order to get federal funding the state must comply.

Third, as long as the federal government has the power to levy income tax they will never worry about balancing the budget because they know that they can always ask for more and push it into the future.

Forth, with all the agencies that they have created with these taxes they hire a vast number of employees, almost 3 million making on average over 2 times more than people in the private sector and with many getting benefits worth over $40,000 a year. . Also each congressman has on average over 16 aides with many making over $100,000 a year. Each year congress spends around $4.8 billion on itself. BTW Before income tax, being a congressman was a part time job.

Fifth, income tax can make it very hard on a person, corporation or news media if they ruffle the wrong feathers. I.e. taking a stance against a new government bill or maybe speaking out on some fraud happening in a federal agency. Income tax limits free speech very strongly in a back door sort of way.

Can you see why a congressman can be so important?

Have you ever seen the guy in the money shirt running around on TV touting his book on how to get free money from the federal government? Where do you think all that money comes from? Think of it this way, income tax is being used to buy votes. Is this fair?

Other problems income tax has caused!!
-Keeps wages down
-Forces both husband and wife into having to work to support a family
-Adds a minimum of 35% to the cost of goods and in some cases 100, 200 to 300%. Income tax is a value added tax.
=It causes families and companies to not use some good business or financial practices.
-And a big one, it sends businesses and good jobs out of the country. This 1 is a very interesting one in a few ways. Instead of dropping income taxes for in country businesses the federal government goes out of its way to make sure other countries have income taxes by using our income tax money to put financial pressure on countries that they call tax havens, i.e. countries with low or no income tax.

The above are the reasons income tax was created, now what happens if we get rid of it?

Well for starters your congressman loses all kinds of power and the power flows back to the state. The main job anymore of a congressman is to get the money you sent to the federal government back to his district or state. Wouldn’t it be better to just pay it directly to your district or state? Would be definitely less hands handling it and would you not have much more say in how it was gong to be used? Here is another question, when did being a member of congress become a full time job?

Manufacturing businesses would flourish; those that left the USA would move back and other businesses that are looking for a place to move to would now consider the United States first. Unemployment would drop drastically. Income taxes that were paid to the federal government would now go to employees as increased wages.

But most of all your vote would mean a lot more because much power and decisions would come back to the state and local level where it would be much easer to keep an eye on what is really needed for your local level, Oh this would also stop a lot of the lobbying and bribing of national officials which they use to get favorable welfare or tax treatment.

Think of income tax as a parasite , living off your labors, a tax that does not make you more productive but a tax that makes you work harder just to survive, a tax that stymies your productivity, a tax that makes you a slave for if you work you must pay it

Income tax creates a very dependent culture which relies on the government, it stops people from being independent, and it creates a crutch, one that is very hard to throw away. Marx knew this and so did Woodrow Wilson and Theodore Roosevelt. It is the key to creating “nationalism”; it is where the federal government gets all its power.

Just remember, the power to tax is the power to control.

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About ketchemandfleezem

I like to call tops and bottoms in the market.
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26 Responses to Income tax and why it does not work!

  1. zoomer says:

    can you name one libertarian government that works? or has ever worked?

    Like

  2. aspering says:

    http://www.infoplease.com/ipa/A0005921.html

    true history of the income tax

    Like

    • No not the true history of tax on labor , for through out history most of all governments have forced some type of tax on labor from slavery to confiscation of property. In the end it has destroyed all of those nations.

      Like

  3. manually says:

    it would be interesting to see how wars shaped taxes: wars and thus increased spending brought about the first taxes, the US fought a cold war with russia for years, for years our military outlay rivals all other countries combined, you republicans want the number one defense , but don’t want to pay for it. who pays for the armed forces? how about bake sales?

    Like

  4. sorry man but show me one government in the history of man that in the long run had any respect for the individual? Governments are about the collective be it under a king , dictator or a democracy. This is where rule of law comes in. It is there to protect the individual from governments.

    Like

  5. inclined says:

    On August 17, 2006, Armstrong, then fifty-six years old, pled guilty to one count of
    conspiracy to commit securities fraud, wire fraud, and commodities fraud.The district court
    sentenced Armstrong to sixty months’ imprisonment and three years supervised release, and
    ordered him to pay $80,000,001 in restitution to sixty defrauded customers.
    isnt this the guy you continually quote? i know it’s a obama, pope, IMF plot!

    Like

    • Why do you not use your real id? GW
      It seems obvious you no little about Armstrong.
      As someone who has followed him for 20 years, I can tell you his conviction for fraud and all that followed is a sad reflection on US justice NOT on Armstrong.
      After a record internment for contempt of court, after a plea that included a jail sentence (because they were never going to free him) , he was exonerated free and clear.
      So he committed no crime and it was so recognized.
      I suggest you actually read up on what happened to him.

      Shame on the US justice system.

      Like

      • thedumbone says:

        armstrong another genius, if so, simply trade your way to a fortune, why the need to charge subscribers, oh i know he wants to share his knowledge, how noble, he’s a convict. if i had that knowledge as would anyone, i would simply buy the nicest beach
        and trade away.

        Like

  6. I am deleting “ididntdoit and hesabum” post because of not being honest and hiding behind too many fake names. He made a remark about my sites name saying it is not a real name, well when I get time Ill tell the story about Ketchem , It is one I want to tell.

    Like

    • thedumbone says:

      so you can use a fake name and i cant, a typical teacup move, you have your rights and i have none, you CENSORED me , the truth hurts huh, and by the way, what possible difference does a name make,we are on the internet, dont you go by the name hyperion, im sure your mom yelled that at dinnertime,” Hyperion ,dinners ready” allright you want my real name. you got it whatever name i use has nothing to do with the truth,
      armstrong is a felon.

      Like

  7. thedumbone says:

    ketchem or hyperion whatever your name is , be home when the streetlights come on. you censored me cause I USE a fake name, you censored me because i told the truth. google has the truth, google martin armstrong. you be the judge. genius or convict?

    Like

  8. thedumbone says:

    you poor republicans, and there is nothing dumber than a poor republican, you know why i love Obama, pull up a monthly chart of the SPY, notice the wonderful incline since he got in office, that’s why those with money love the guy, weve doubled our money. and Jeff you’re dim , whats so important about using my name …will you voodoo me .. my name is Thedumbone.

    Like

  9. thedumbone says:

    armstrong wasnt smart enough to stay out of jail for five years , was he. he’s a felon, oh i know it was a government plot.

    Like

  10. thedumbone says:

    and jeff use your brain, instead of using bad scans to find plays, find scans that are proven to pick winners and many plays. MR will tell you which scans are better than others. some of those MA crosses you quote are for crap. and tell Hank his cheapie breakouts scan does not test well with MR.

    Like

  11. thedumbone says:

    you censored my posts , hyperion, what happened to that guy who champions rights and freedoms, but when you get the chance to implement those ideals, you revert to censorship: a typical republican attitude, my rights are sacred , but not yours. if i dont agree , youre obnoxious. martin armstrong is a felon, google him or go to Wilkipedia . i would be ashamed to link him to the forum., youll link Madoff next.

    Like

    • jaybird says:

      Armstrong is a knowledgeable and insightful man who spoke the truth about the government. They didn’t like it and ignored him in jail for years until he was finally exonorated and released. Not a felon at ALL.

      Like

  12. thedumbone says:

    jaybird what a ditz you are, lead poisoning will do that, when you go to PRISON for stealing peoples’ money that makes you a FELON. google martin armstrong, even you will see the truth.

    Like

  13. Jeff says:

    Hyperion RE:April 18th 2:01am”Why not use the name you use on Stockvision”>That is not my post..or have i ever posted on your blog..AKA The real jeff$$ 2:01am is way past my SLEEPY time.

    Like

  14. Pingback: Fatca- another reason to get rid of the IRS | ketchem and fleezem

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