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100 Years Old And Still Killing Us: America Was Much Better Off Before The Income Tax

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100 Years Old And Still Killing UsDid you know that the greatest period of economic growth in American history was during a time when there was absolutely no federal income tax?  Between the end of the Civil War and 1913, there was an explosion of economic activity in the United States unlike anything ever seen before or since.  Unfortunately, a federal income tax was instituted in 1913, and this year it turned 100 years old.  But there was no fanfare, was there?  There was no celebration because the federal income tax is universally hated.  Sadly, most Americans just assume that there is no other option to an income tax.  Most Americans just assume that it has always been with us and that it will always be with us.  This year, the American people will shell out approximately $4.22 trillion in state and federal income taxes.  That amount is equivalent to approximately 29.4 percent of all income that Americans will bring in this year, and that does not even take into account the dozens of other taxes that Americans pay each year.  At this point, the U.S. tax code is about 13 miles long, and those that are honest and pay their taxes every year are being absolutely shredded by this system.  But wouldn’t the federal government go broke if we didn’t have a federal income tax?  No, actually the truth is that the federal government did just fine before there was an income tax.  In fact, the U.S. national debt has gotten more than 5000 times larger since the federal income tax and the Federal Reserve were created by Congress back in 1913.  As I have written about previously, the Federal Reserve system was actually designed to trap the United States in a debt spiral from which it could never possibly escape, and the federal income tax was needed to greatly expand the size of the federal government and to soak the American people of the funds necessary to service that debt.  But it doesn’t have to be this way.  America was once much better off before the income tax and the Federal Reserve were created, and we could easily go to such a system again.

What we desperately need to do is to teach the American people a little history lesson.  The truth is that the greatest period of economic growth in U.S. history was between the Civil War and 1913 when there was no federal income tax at all.  The following is from Wikipedia

The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873.  The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.

Sadly, most Americans cannot even conceive of an economy like that.  Most Americans cannot even imagine having a nation without a massively bloated federal government and without an unelected central bank centrally planning our financial system.

But you know what?

It worked.  In fact, it worked fantastically well.

The period between the Civil War and 1913 propelled the United States to greatness.  Just check out all of the good things that Wikipedia says happened for the U.S. economy during those years…

The rapid economic development following the Civil War laid the groundwork for the modern U.S. industrial economy. By 1890, the USA leaped ahead of Britain for first place in manufacturing output.

An explosion of new discoveries and inventions took place, a process called the “Second Industrial Revolution.” Railroads greatly expanded the mileage and built stronger tracks and bridges that handled heavier cars and locomotives, carrying far more goods and people at lower rates. Refrigeration railroad cars came into use. The telephone, phonograph, typewriter and electric light were invented. By the dawn of the 20th century, cars had begun to replace horse-drawn carriages.

Parallel to these achievements was the development of the nation’s industrial infrastructure. Coal was found in abundance in the Appalachian Mountains from Pennsylvania south to Kentucky. Oil was discovered in western Pennsylvania; it was mainly used for lubricants and for kerosene for lamps. Large iron ore mines opened in the Lake Superior region of the upper Midwest. Steel mills thrived in places where these coal and iron ore could be brought together to produce steel. Large copper and silver mines opened, followed by lead mines and cement factories.

In 1913 Henry Ford introduced the assembly line, a step in the process that became known as mass-production.

But if we didn’t have an income tax, how did we fund the government?  Well, we mostly did it with tariffs and excise taxes.  The following is from a recent article by Thomas R. Eddlem

Prior to ratification of the 16th (income tax) Amendment in February 1913, the federal government managed its few constitutional responsibilities without an income tax, except during the Civil War period. During peacetime, it did so largely — or even entirely — on import taxes called “tariffs.” Congress could afford to run the federal government on tariffs alone because federal responsibilities did not include welfare programs, agricultural subsidies, or social insurance programs like Social Security or Medicare. After the Civil War, tariff revenues sometimes suffered under a protectionist policy ushered in by the Republican Party that supplemented federal income via excises on alcohol, tobacco, and inheritances. But before the war, the need for tariff revenue to finance the federal government generally kept the tariff at reasonable levels. During wartime throughout early American history, the Founding Fathers were able to raise additional revenue employing a different method of direct taxation authorized by the U.S. Constitution prior to the 16th Amendment. These alternative taxing methods gave the young American nation embarrassing peacetime budget surpluses that several times came close to paying off the national debt.

So why didn’t we stick with that system?

Well, early in the 20th century the “progressives” and the social planners started to take control in Washington.

And one of the things that “progressives” and social planners love is an income tax.  In fact, the second plank of the Communist Manifesto is a “heavy progressive or graduated income tax”.

Of course they promised us that income tax rates would always remain low.  And at first they were quite low.  The following is from an article by Adam Young

The presidential election of 1912 was contested between three advocates of an income tax. The winner, Woodrow Wilson, after the ratification of the Sixteenth Amendment, called a special session of Congress in April 1913, which proceeded to pass an income tax of 1% on incomes above $3,000 and applied surcharges between 2% and 7% on income from $20,000 to $500,000.

But once the “progressives” and the social planners get their feet in the door, they always want more.

And we have seen how things have worked out.  Today, the American people are being taxed into oblivion.

In a previous article entitled “Show This To Anyone That Believes That Taxes Are Too Low“, I listed dozens of other taxes that the American people pay each year in addition to federal and state income taxes…

#1 Building Permit Taxes

#2 Capital Gains Taxes

#3 Cigarette Taxes

#4 Court Fines (indirect taxes)

#5 Dog License Taxes

#6 Drivers License Fees (another form of taxation)

#7 Federal Unemployment Taxes

#8 Fishing License Taxes

#9 Food License Taxes

#10 Gasoline Taxes

#11 Gift Taxes

#12 Hunting License Taxes

#13 Inheritance Taxes

#14 Inventory Taxes

#15 IRS Interest Charges (tax on top of tax)

#16 IRS Penalties (tax on top of tax)

#17 Liquor Taxes

#18 Luxury Taxes

#19 Marriage License Taxes

#20 Medicare Taxes

#21 Medicare Tax Surcharge On High Earning Americans Under Obamacare

#22 Obamacare Individual Mandate Excise Tax (if you don’t buy “qualifying” health insurance under Obamacare you will have to pay an additional tax)

#23 Obamacare Surtax On Investment Income (a new 3.8% surtax on investment income that goes into effect next year)

#24 Property Taxes

#25 Recreational Vehicle Taxes

#26 Toll Booth Taxes

#27 Sales Taxes

#28 Self-Employment Taxes

#29 School Taxes

#30 Septic Permit Taxes

#31 Service Charge Taxes

#32 Social Security Taxes

#33 State Unemployment Taxes (SUTA)

#34 Tanning Tax (a new Obamacare tax on tanning services)

#35 Telephone Federal Excise Taxes

#36 Telephone Federal Universal Service Fee Taxes

#37 Telephone Minimum Usage Surcharge Taxes

#38 Telephone State And Local Taxes

#39 Tire Taxes

#40 Tolls (another form of taxation)

#41 Traffic Fines (indirect taxation)

#42 Utility Taxes

#43 Vehicle Registration Taxes

#44 Workers Compensation Taxes

Yet even with all of these taxes, our local governments, our state governments and our federal government are all absolutely drowning in debt.

In another previous article entitled “24 Outrageous Facts About Taxes In The United States That Will Blow Your Mind“, I listed a number of reasons why our federal income tax system has become a complete and utter abomination that can never be fixed…

1 – The U.S. tax code is now 3.8 million words long.  If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.

2 – According to the National Taxpayers Union, U.S. taxpayers spend more than 7.6 billion hours complying with federal tax requirements.  Imagine what our society would look like if all that time was spent on more economically profitable activities.

3 – 75 years ago, the instructions for Form 1040 were two pages long.  Today, they are 189 pages long.

4 – There have been 4,428 changes to the tax code over the last decade.  It is incredibly costly to change tax software, tax manuals and tax instruction booklets for all of those changes.

5 – According to the National Taxpayers Union, the IRS currently has 1,999 different publications, forms, and instruction sheets that you can download from the IRS website.

6 – Our tax system has become so complicated that it is almost impossible to file your taxes correctly.  For example, back in 1998 Money Magazine had 46 different tax professionals complete a tax return for a hypothetical household.  All 46 of them came up with a different result.

7 – In 2009, PC World had five of the most popular tax preparation software websites prepare a tax return for a hypothetical household.  All five of them came up with a different result.

8 – The IRS spends $2.45 for every $100 that it collects in taxes.

9 – According to The Tax Foundation, the average American has to work until April 17th just to pay federal, state, and local taxes.  Back in 1900, “Tax Freedom Day” came on January 22nd.

10 – When the U.S. government first implemented a personal income tax back in 1913, the vast majority of the population paid a rate of just 1 percent, and the highest marginal tax rate was just 7 percent.

11 – Residents of New Jersey pay $1.64 in taxes for every $1.00 of federal spending that they get back.

12 – The United States is the only nation on the planet that tries to tax citizens on what they earn in foreign countries.

13 – According to Forbes, the 400 highest earning Americans pay an average federal income tax rate of just 18 percent.

14 – Warren Buffett had an effective tax rate of just 17.4 percent for 2010.

15 – The top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.

16 – Sadly, as Bill Whittle has shown, you could take every single penny that every American earns above $250,000 and it would only fund about 38 percent of the federal budget.

17 – The United States has the highest corporate tax rate in the world (35 percent).  In Ireland, the corporate tax rate is only 12.5 percent.  This is causing thousands of corporations to move operations out of the United States and into other countries.

18 – Some tax havens are doing a booming business in setting up sham headquarters for U.S. corporations.  For example, the city of Zug, Switzerland only has a population of 26,000 people but it is the headquarters for 30,000 companies.

19 – In 1950, corporate taxes accounted for about 30 percent of all federal revenue.  In 2012, corporate taxes will account for less than 7 percent of all federal revenue.

The wealthy have become absolute masters at avoiding taxes, and the poor are not able to pay much.

So who always gets squeezed?

The middle class does.

No matter what our politicians promise us, the hammer is always brought down on the middle class.

And now, according to The Huffington Post, the IRS says that it can even read our old emails without a warrant to make sure that we are paying all of the taxes that we should be…

The IRS apparently interprets that authority very broadly, the documents show: as long as you’ve stored your email in a cloud service like Google Mail, and as long as those emails haven’t been deleted after a few months, the agency thinks it doesn’t need a warrant to read them.

The idea of IRS agents poking through your email account might sound at the very least creepy, and maybe unconstitutional. But the IRS does have a legal leg to stand on: the Electronic Communications Privacy Act of 1986 allows government agencies to in many cases obtain emails older than 180 days without a warrant.

That’s why an internal 2009 IRS document claimed that “the government may obtain the contents of electronic communication that has been in storage for more than 180 days” without a warrant.

It should be noted that the IRS is claiming that it does not use emails “to target” specific taxpayers, but notice that they are not promising not to use old emails against taxpayers once they are officially being audited or investigated…

“Contrary to some suggestions, the IRS does not use emails to target taxpayers. Any suggestion to the contrary is wrong.”

In any event, the truth is that we have one of the most complicated and one of the most intrusive tax systems in the history of the world.

Don’t the American people deserve better?

What do you think?

Should America go back to a system where there is no income tax and no Federal Reserve?

Please feel free to share what you think by leaving a comment below…

America Is Broke

  • markthetruth

    Simple: Taxes = No Freedom Ever !

    Never free to own your own land. Etc.

    We Even have a Death Tax.

    the end…

    • stubones49

      The term “Death Tax” is an Orwellian scam tactic coined by Republican propagandist Frank Luntz to make the common man unaware that it is A tax on the ubber wealthy and not him…
      “Political use of “death tax” as a synonym for “estate tax” was encouraged by Jack Faris of the National Federation of Independent Business[50] during the Speakership of Newt Gingrich.

      Well-known Republican pollster Frank Luntz wrote that the term “death tax” “kindled voter resentment in a way that ‘inheritance tax’ and ‘estate tax’ do not”.[51]

      Linguist George Lakoff states that the term “death tax” is a deliberate and carefully calculated neologism used as a propaganda tactic to aid in efforts to repeal estate taxes. The use of “death tax” rather than “estate tax” in the wording of questions in the 2002 National Election Survey increased support for estate tax repeal by only a few percentage points”.[52]

      • Captain Capitalism

        You can put perfume on a turd, but in the end it’s still a turd.

        • stubones49

          Yes, indeed- Seems to be the norm for polititions these days….They reek-

  • Leslie Garrett

    Of course America had a roaring economy after the Civil War, they had a vast, virgin continent to rape and sell off. Once that industrial economy provided the tools, the Yankee money men set about occupying and destroying every different culture within reach: the South, the tribes of the West, and all of Northern Mexico and California. Then they faked an incident in Havana and went after all of the remaining colonies of Spain. They hosted a feeding frenzy for American careers and war industries every few decades until recently; now with their “War on Terror” they run the program full time, adding a new victim at least every year.

    • stubones49

      My exact thought while reading this article- And there weren’t 300+ million people back then either…

  • roonster

    Even with this article, you better read between the lines and do a little investigating for yourself. I read, the U.S.A. is already a communist state. ” a goverment that is big enough to give you everything you want, is strong enough to take away everything you have” ! Gerald Ford.

    • Ralfine

      Explain “communist state”.
      With communism = classless society, and

      state = power instrument of ruling class.

      • smallergovnow

        classless society, WRONG, you have the serfs and you have the upper class privledged politically connected …

        • Jacob

          Only problem is, we’re not leaning towards communism. We’re leaning towards a Nationalist Oligarchy, run by a totalitarian group of the rich.

  • The Federal Reserve bank is a parasite. Feed it and it will get bigger.

    At what point would it be so big that its death would kill the host?

    • stubones49

      Well stated, Tim…

  • mleblanc138

    I’ve been watching the “Guy on a Buffalo” videos a ton this weekend and I even watched the movie Buffalo Rider. The Buffalo is truly a great symbol of the type of economic growth in the mid to late 1800s. Buffalo hides were something like 2 dollars each, which was 1/10 ounce of Gold back then. Any able bodied man that could shoot a rifle well enough had it made in the shade and typically employed a skinner to get the hides for them after some kills. Some Buffalo hunters even had people to reload bullets for them.

    • stubones49

      Some say that the Buffalo were slaughtered so that the railroads cold expand West, but the real truth is that they wiped out the Buffalo mainly to starve out the Native American tribes…
      We do not have A proud history IMO…

  • Tim

    I remember my first semester of tax law. On the very first page of the textbook there was a footnote that said something to the effect that there is doubt as to whether the 16th Amendment to the Constitution was properly ratified!

    That and other arguments against the income tax have never stopped me from paying taxes. I’m not going to mess with the IRS. Peter Schiff’s father is in prison for tax evasion.

    • Tim

      I think it’s ironic that Peter Schiff’s father’s initials are I.R.S. – Irwin R. Schiff.

      • jaded

        I hate to be that guy, but that’s a coincidence, not irony.

  • K

    I too notice the military connection. Prior to 1913 there was only a very small standing Army in the U.S. The Navy was not even 1/3 the size of the British Navy..Except for the short lived Spanish-American war. We mostly minded our own business. Now we stick our nose in everybody’s business. We have a large standing Army, a large standing Air Force, and a Navy bigger than the next 3 largest Navies combined. Not to mention military bases all over the World. Could not have all those things without an income tax. Some of us might argue, we would be better off, if we did not have all those things. But in general you can not convince the American people of that fact. They do not understand, when you constantly walk around with a big stick. You might use it a bit more often then you really should..

  • Rodster

    I remember my very first job back in 1976. I was making minimum wage. When I got my first paycheck I noticed it wasn’t for the full amount. So I stormed into the owners office and accused him of ripping me off.

    He just started laughing and said “you’ve got a lot to learn about life, welcome to the real world kid.

    • mleblanc138

      Who’s this FICA person? I want his job.

  • Bimbam

    Excellent message! Liberals should NEVER be in any positions of any power.

    We should separate them from their behavior before running for any office or authority because they will always lie that they are not liberals.

    So, we cannot pay attention to what they say, only what they do. Once they are self-exposed, (you don’t have to do nothing), then license them as liberals and thus bar them from any position of authority.

    The positions can be worked out later. Just as we license pilots, taxi drivers, lawyers, etc. We must do the same with liberals.

    Once we see the license they are barred as noted above.

  • Paul

    You know things are bad when states like Maryland impose a “Rain Tax”

    Formally known as the “storm management fee” residents will incur taxes based on the surface area of a property and interference with water runoff

    This is an outrage in my opinion. With wages going down and the costs of everything else going up the Maryland policians are showing no mercy by making imposing this idiotic tax.

    • Handog

      The extra $200.00 a year is just part of it. The big stores with their BIG parking lots will get hit the hardest. Of course they will pass on the added cost to their customers. (Tax on top of Tax)

      • Ralfine

        They can rip up the parking lots and replace them with lawns, so that the rain water can disappear into the ground.

        Or they can cover their parking lots with roofs and install photovoltaics onto the roof and earn some money this way.

        • smallergovnow

          This is a solution? Where are you from?

          • Ralfine

            If concreted-over areas are taxed, usually because they increase flooding risks, then remove the concrete and let the water run off naturally into the soil.

            If you can’t get rid of these areas, then at least make money from them.

            I lived a long time in China, where people work around the government all the time, as there is no point to fight against it and go to prison.

            They see the government like the weather – can’t do anything to change it. Accept it and protect yourself against it.

            In Germany they say – there is no bad weather, just wrong clothing.

            You could also build multi-storey car parks, rip up the flat car parks and plant trees and shrubs instead.

    • Tim

      I heard about the “rain tax” in Maryland. I am so glad I left Maryland several years ago. It seems that things really went downhill when Martin O’Malley got into office. e.g. same-sex marriage.

      • mleblanc138

        I grew up in Maryland. I’m so glad I left for Utah in late 2008.

      • Paul

        Tim the politicians are pulling out the stops when it comes to bleeding the middle class dry.

      • Jacob

        Ignorance is bliss

      • ConcernedAmerican

        Just like California, once they get done with one state, they just move to others. Ask natives from Oregon, Arizona, Washington, Colorado, and Texas how they feel about what Californians do when they move into other states.

    • Dman

      I sure hope we don’t get a rain tax in Washington State!

    • ConcernedAmerican

      God makes the rain but man will tax God’s creations. Ecclesiastes 5:10

  • Handog

    And what little they let us keep they then let us know what we can spend it on. Entrepreneurs and savers are punished in this country. Incentives have been stripped from us. No matter how hard or how many years you work, you can never own a piece of property. You will always pay rent to the government in the form of property taxes. Slavery never ended. Just reorganized.

  • Paul

    It was Justice Oliver Wendell Holmes who said, “taxes are what we pay for a civilized society”

    As each passes it seem our society is becoming less civilized. Yet taxes continue to rise..

  • Paul

    Justice Oliver Wendell Holmes who said, “taxes are what we pay for a civilized society”

    I could not disagree more. As the years pass by our society is becoming less civilized. Yet our taxes continue to rise. Life would be much better if it was the other way around.

  • John Williams

    As I write this, gold and silver are tanking as is oil and other commodities. Something is brewing in the coming days. What it is I don’t know, but it is not good.

    • jsmith

      Yes, I have noticed that both gold and silver are down. The termites in power are shorting so people will sell the metals. Don’t panic, Don’t sell, buy!

    • stubones49

      The ruling elite have always kept the price of gold down creating the illusion of the dollar’s strength. The only thing the dollar represents is “debt” and the only thing that keeps it in circulation is faith. When gold goes through the roof, people are speculating on the dollars demise {hyper inflation} so gold prices are controlled. The Rothschild Family sets the price on gold several times A week from their London World control center…..

  • Ralfine

    Tell you what, young plants and animals always grow fastest, compared with mature ones.

    2 weeks ago I planted a 5mm seed, and the plant is now 100mm tall.

    One of the largest CONSUMER sectors in the US is the defense industry, which is solely funded by the taxpayers money.

    Cut this down and put the money into INVESTMENT: infrastructure, and America will be great again.

  • Ralfine

    #41 Traffic fines

    Probably the most complained about and the easiest to avoid.

  • Blackhawk

    Of course it should go to a system free of income tax, but do you think the banksters who brought this up in 1913 will go down easy?
    It would require a massive upheaval or a new revolution to bring down this system and it seems that we are not there yet. Maybe more pain should be inflicted before people wake up.

  • Ralfine

    The income tax form in Hong Kong is 4 pages long. The instruction is 6 pages long.
    Content: Name, Address, ID-number (also serves as tax file number), companies you worked for since the last tax statement, and the income you received in this time from each of them, property you own, name of spouse and children, details of your proprietary business and whether spouse and business shall be taken into account together with this statement, amount you donated, amount you spent on education and mortgages.

    That’s it. It takes less time to fill in than wondering about how easy this can be.
    About 3 months later you get a statement on how much tax you owe this year, and deadlines for the two installments, spaced about 3 months apart.

    The IRD compares your statement with the statement of the companies about what salaries and wages they paid to whom (the companies want to deduct these costs from their income).

  • Why not just suspend it for one year? See what happens. Give it a try. Oh wait — that makes sense. It’ll never happen. Never mind.

  • Jodi

    The IRS is a wealth confiscation agency.

  • JAH666

    “But if we didn’t have an income tax, how did we fund the government? Well, we mostly did it with tariffs and excise taxes.”
    Quite right Michael, but the same ‘Progressives’ saw the one-world goal way back then. What we now refer to as the NWO is just another way to describe a planetary government that controls all means of production and all human activity. This was presaged and described by the budding Progressive/Communist movement from the late 19th century. But you can’t bring sovereign nations and free peoples to heel by allowing them to fund their governments mostly with tariffs and excise taxes. Only with crushing taxation and open borders for the benefit of the banksters can you advance ‘globalism’, which just is another cover for the communistic goals of the NWO.
    God help us, we did it to ourselves.

  • drbuzzsaw

    When I was in school (many years ago) they told us that the reason a loaf of bread was so high (25 cents a loaf) was due to all the taxes paid on that loaf of bread that are hidden. You have the seed company that pays taxes on the seed they sell and their profit, you have the farmer paying taxes on his income, you have the grain elevator paying taxes on what they make, they sell it in bulk to a flour company who makes flour and pays taxes, and sells it to a bread company they pay taxes and sell the bread to a warehouse who pays taxes and sells it to your local grocery store where they pay taxes on selling it to YOU. With ALL the taxes added up (then) they said a loaf of bread was taxed 137 times before it got to your table. That was in 1967, Now you know why a loaf of bread now cost you $4 to $5 a loaf now-days Each step of the way you have property taxes, payroll taxes, profit taxes, Federal, City, State and County taxes, Taxes on the water they use, taxes on the electricity they use etc. and a whole slue of hidden taxes. Taxes, Taxes, Taxes – Tax me some more, now that I have nothing I own, I guess you will tax the air I breath or the water I drink from a nearby stream???

  • El Pollo de Oro

    Here in Democrap-controlled Philadelphia (or as they call it some parts of town, Killadelphia), giant corporations receive tax abatements while the city’s revenue department hounds small businesses to death. It’s a perfect example of what Gerald Celente talks about when he says that as The Banana Republic of America slides deeper and deeper into the financial abyss, the little guy can look forward to being bled dry at every turn. And if you’re thinking about leaving this Third World hellhole that used to be Los Estados Unidos, just remember that the Immoral Rape Service expects to tax the money you’re earning in whatever foreign country you move to. Alex Jones is absolutely right when he says that this country has become an “abomination” on so many levels.

  • Ameen

    We MUST have these taxes!!! How else will the Obamas be able to vacation and afford Air Force One, nice clothes, parties at the WH with Beyonce, et al???

  • interestedobserver2

    There has to be a better way.

  • 2Gary2

    Quote of the Week

    “The plutocracy has learned something important from the collapse of
    2008 and its aftermath. If you cause a depression, if you loot and exploit the
    vulnerable to enrich yourselves while spreading the gap between rich and poor,
    and if you even go so far as to steal the homes and other assets of your
    victims in broad daylight, then mainstream parties of the contemporary West
    will do nothing to stop you.”

    Dan Kervick,
    Where We Are Now, New Economic Perspectives,
    April 9, 2013

  • Paul

    Hopefully there are a lot of people from California reading this article. California was voted the worst place to do business. Excessive taxation and regulations strangulate business growth and make it difficult for people to start a new business.

  • smallergovnow

    Michael, great and timely post. a couple of corrections, 1040 instructions are now 214 pages. Add to your tax list city lodging taxes and airfare taxes that now fund the TSA. love your site and your posts. wish you all the best…

  • 2Gary2

    do not forget all the tax expenditures for the wealthy–here is one:

    Capital gains: The capital gains preference taxes income from
    investments at a lower rate than ordinary wage income, providing a huge
    tax break to investors. Republicans argue that the low capital gains
    rate boosts the economy, but there is little evidence that
    higher capital gains rates hurt the economy. Instead, the preference
    increases income inequality, since capital gains income is earned almost
    solely by the wealthy. Cuts to the capital gains rate since Ronald
    Reagan equalized it with tax rates on normal income, in fact, are “ by far the largest contributor” to increased income inequality over the last three decades, according to recent studies

  • When the IRS cannot be relied upon to give advice on the tax code it administers (and you are criminally liable for relying upon that same incorrect tax advice), why haven’t we changed our government? Apathy and carelessness have killed what used to be America.

  • none

    GOOD NEWS: Micheal.

    The president has finally shown that he can reduce spending!
    He Issued a statement before the Boston bombing. That he will not, or anyone else be attending Margret Thatchers funeral. (They are our closest alleys)?

    • stubones49

      Many of them would be arrested as War Criminals in Europe…

  • Kitty

    My older brother recently passed away. I am the Executor for his estate, valued at around $600,000. I just made the first estimated death tax payment to the IRS — $90,000.00. In the end I might have to pay them even more – as this 90K payment was just the first, and estimated.

  • flek

    Not only the income tax, but the usury federal reserve ponzi racket. Creating money…loans at interest and not enough money printed to cover said loans is insidious.

    Created by the same people who have a stranglehold on the US government….


  • monk

    During that time most people owned no homes, lived much shorter lives, and had fewer basic needs and amenities available

  • Daniel

    A simple economy would be better, no tax on everything only income tax over 10 Millions, make everything private (schools postal office etc) eliminate welfare, and give tax brakes to those that make millions only if they are able to have as many kids as they can, this eventually will make millioners reproduce faster (if your parents were rich you are probably going to be too), if you parents were poor you are going to be probably poor, stoping welfare will stop stupid and poor people from reproducing, and giving tax break to the rich for having kids will make rich people reproduce faster, at the end you will have so many rich people paying taxes, vs having so many people having to support because welfare, stop spendening is the most easy way to stop tax from raising, but looks like the goverment is so stupid with money that this will never happen, we will have somany recession in the future that i don’t doubt this civilization will someday end.

Finca Bayano

Panama Relocation Tours



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