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My Humble Opinion

Income Tax Blues

United States Constitutional Amendment XVI

Passed by Congress July 2, 1909
 Ratified February 3, 1913

"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."

View the Amendment here

Thirty words!  Those simple thirty words make up the 16th Amendment and on February 3, 1913 we granted politicians the power to seize, at their will, every penny of our hard earned dollars.  Every penny you say?  Yes.  The Amendment reads:

"The Congress shall have power to lay and collect taxes on incomes, . . ."

without any limitations on the amount, or the percentage of tax they may lay and our politicians have taken advantage of that power in the most brutal of ways.

Currently, the government confiscates 39.6% of all married couple’s taxable income over $457,600.  The first tax levied after enactment of the 16th Amendment (adjusted for inflation) was 1% of the first $453,292 and stepped up to 7% of everything over $11,332,304.

That original amount appears reasonable but, unfortunately politicians are not. It did not take long for the politicians to realize they had given birth to the proverbial Golden Goose with an UNLIMITED store of eggs for their spending pleasure. 

Politicians created the 16th Amendment for their stick and taxpaying Americans became their party pinatas.

Politicians legislated  tax increases every year and in only four years the tax had risen to:

    1913 - 1% of the first $452,292 stepping to 7% of everything over $11,332,304
    1917 - 2% of the first $  2,000 stepping to 67% of everything over $2,000,000
    1918 - 6% of the first $59,438 stepping to 77% of everything over $14,859,578
    1919 - 4% of the first $  4,000 stepping to 73% of everything over $1,000,000

Calvin Coolidge, Republican, managed a significant reduction as President:

    1925 - 1.5% of the first $51,287 stepping to 25% of everything over $1,282,169

Herbert Hoover, Republican, signed the Revenue Act of 1932 during his last year in office after the failure of congress to pass a national sales tax.  The nation was suffering from huge budget deficits because of loss of revenue resulting from the continuing economic depression and, of course, congressional overspending.  The Act raised taxes to:

    1932 - 4% of the first $4,000 stepping to 63% of everything over $1,000,000

Franklin Roosevelt, Democrat, and his democrat congress, during involvement in WWII  managed to raise income taxes to:

    1942 - 19% of the first $ 2,000 stepping to 88% of everything over $200,000
    1944 - 23% of the first $ 2,000 stepping to 94% of everything over $200,000

I am unable to comprehend the thought process of a politician that somehow believes he is entitled to 94% of my earnings.  The government that believes my share of my earnings is 6% and its share is 94% is not only corrupt, it is criminal.

For the next twenty years the tax rates remained fairly stable at these rates until President Lyndon Johnson, Democrat, signed legislation which was strongly encouraged by prior President John Kennedy, Democrat, lowering the rates to:

    1964 - 16% of the first $7,238 stepping to 77% of everything over $2,895,221

Again the tax rates remained fairly stable until President Ronald Reagan, Republican, campaigned a republican congress to lower tax rates to:

    1982 - 0% of the first $7,906 stepping to 50% of everything over $199,035

The Economic Growth and Tax Relief Reconciliation Act of 2001 passed by George W. Bush would lower the top tax rate to 35% by 2006 which is the current rate in effect today.

Observing the above rates demonstrate that politicians are not the least bit shy with putting their hands into your pocketbook.  From the year after they passed the 16th Amendment, the historical top rate has been in the 70% - 90% range.  And remember,  the politicians have the power to tax you 100%

The 16th Amendment goes way beyond simple income tax legislation.  If you have ever had a return questioned by the IRS, you know exactly what I mean.  You are guilty!  You are obligated to prove your innocence of any alleged crime they believe you may have committed. You are the one who must prove the deduction is legitimate, you are the one who must prove your gross income is lower than the IRS thinks it should be, you are the one who must prove all your filings were timely. You are guilty!  Should you fail to win approval and convince the IRS of your lawful returns, the IRS becomes your judge, your jury, your executioner.  They even have the power to unilaterally prepare your tax return for you, with the income and expenses they imagine appropriate, and then charge you for the tax they computed.  You must then prove them wrong.

The powers granted to the IRS are grossly violating the 4th Amendment which simply states:

    "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."

Should the IRS have you in their gun sights (that is not a metaphor), they can, and will, totally at their discretion, invade and search your homes, offices, papers, correspondence, private affairs, private accounts, social relationships and private possessions whether or not they may be related to the alleged crime.  They have the power to occupy, with or without justification, anywhere the inquisitive and prying fully armed government agents wish to intrude.  Their power is absolute.

The 16th Amendment is oppressive, unfair, punitive, prejudiced and discriminatory because it harbors no attempt to equalize the burden of taxation to all citizens in a fair manner.  The tax rates are progressive which, instead of being equal, punishes our more productive citizens.  If taxpayer "A" earns twice as much as taxpayer "B", then "A" is already paying twice as much tax.  To force "A" who is more productive and successful to pay a higher tax rate, is unfair, unjust, punitive, prejudicial and discriminatory.

If the tax rate for taxpayer "A" is 30% and the tax rate for taxpayer "B" is 15%, "A" is not paying twice as much as "B", which would be fair, "A" is paying four times as much tax.  Not fair.

Somebody needs to explain to me the justification why success by a person who is more adept at creating and earning wealth should be punished by government politicians.  1776 we conducted an armed revolution against a government that imposed rules, regulations and taxes upon us that represented a mere fraction of what our US government and politicians are currently imposing.

Perhaps it is now time to consider another revolution.

That's the way I see it.


September 23, 2012

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