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.