Income Tax Amended to constitution with low expectations
Here's an interesting article from The Omaha Daily Bee, Omaha, Nebraska, February 4, 1913 - Just after the 16th amendment was raitified to the US constitution, authorizing the income tax.
What's really interesting here is that the expectation at the time was a 1% tax on incomes above $4,000 to $5,000. These are two important numbers to compare.
First, and most obvious, while it was expected that congress would tax just 1%, the income tax now starts at 10%, although most people fall into the 20% backet or higher.
Also, this was expected to be a "tax the rich" scheme. But while that minimum of $4,000 has effectively been raised to $12,000 or higher (not specifically, but with the standard deduction) it's important to look at the inflated values of $4,000 in 1913. $4,000 in 1913 is almost $100,000 in 2016. That means this was sold to america as a tax on the super rich, but without that specific limitation written into the bill, politicians did what they do best and continued to expand that power as much as possible. Now even the poor and working class are charged with property tax.
This is why it's so important to scrutinize new bills. Though they might have a seeming innocent purpose or limitation, it's much easier for a program to grow out of control than to implement a new program.
- Where can I learn more about avoiding taxes?
- Can we abolish the income tax?
- Randall Lord imprisoned for breaking a law that doesn't exist.
- There is no law requiring you to pay taxes
- Congress never bailed out the banks