Tag Archives: Income tax

The Terrifying Lessons of COVID-19, by Andrew P. Napolitano

The most terrifying lesson is that most Americans are sheep. From Andrew P. Napolitano at lewrockwell.com:

During the past 18 months, the relationship of the American people to the government has changed radically, as the Constitution’s failure to restrain the federal and state governments and to protect personal liberty has become manifest.

We know that for the past 100 years the growth of the federal government has been exponential. And we know that while formally the Constitution still exists, functionally it has failed miserably, as the deterioration of personal liberty since the spring of 2020 has been as grave as the losses of freedom in the past 100 years.

I am using 100 years as a benchmark because it marks the completion of the takeover of the federal government by the Theodore Roosevelt Republicans and the Woodrow Wilson Democrats who collectively comprised the Progressive movement. This movement brought us in a short 15 years the useless World War I, the destructive popular election of senators, the corrupt Federal Reserve, the theft of property called the income tax and the unconstitutional administrative state.

The war killed millions for naught. The popular election of senators undermined state sovereignty. The Federal Reserve destroyed economic freedom. The federal income tax legalized theft. And the administrative state created an unconstitutional fourth branch of government “experts” answerable to no one.

Yet the iron fist of totalitarian government visited upon the American people in the name of COVID-19 has struck at the heart of the Constitution and landed heavy blows on average Americans in far more acute and direct ways.

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The Greatest Swindle in American History… And How They’ll Try It Again Soon, by Jeff Thomas

The inevitability of paying taxes has often been noted. Not so noted is another inevitability: no government ever thinks it’s collecting enough taxes. From Jeff Thomas at internationalman.com:

property taxes

International Man: Before 1913 there was no income tax, and the United States was a much freer country. Initially, the government sold the federal income tax to the American people as something only the rich would have to pay.

Jeff Thomas: Yes, exactly. It always begins this way. The average person is always happy to see the rich taken down a peg, so this makes the introduction of the concept of theft by the government more palatable. Once people have gotten used to the concept and accept it as being perfectly reasonable, then it’s time to begin to drop the bar as to who “the rich” are. Ultimately, the middle class are always the real target.

International Man: The top bracket in 1913 kicked in at $500,000 (equivalent to around $12 million today), and the tax rate for it was only 7%. The government taxed those making up to $20,000 (equivalent to around $475,000 today) at only 1% – that’s one percent.

Jeff Thomas: Any good politician understands that you begin with the thin end of the wedge, then expand upon that as soon as you feel you can get away with it. The speed at which the tax rises is commensurate with the level of tolerance of the people. And in different eras, the same nation may have a different mindset. The more domination a people have come to accept from their government, the faster the pillaging can be expanded.

As an example, the Stamp Tax that King George III placed upon the American colonies in the eighteenth century was very small indeed – less than two percent – but the colonists were very independent people, asking little from the king in the way of assistance, and instead, relying upon themselves for their well-being. Such self-reliant people tend to be very touchy as regards confiscations by governments, and even two percent was more than they would tolerate.

By comparison, if today, say, Texas were to eliminate all state taxation and allow only two percent in federal taxation, Washington would come down on them like a ton of bricks, saying they were attempting to become a “tax haven.” They’d be accused of money laundering and aiding terrorism and might well be cut out of the SWIFT system. The federal government would shut down the state government if necessary, but diminished tax would not be tolerated.

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Doug Casey on the End of Western Civilization

Western Civilization is faltering because its intellectual foundations—reason and the primacy of the individual—are being ceaseless undermined. From Doug Casey at internationalman.com:

End of Western Civilization

International Man: The decline of Western Civilization is on a lot of people’s minds.

Let’s talk about this trend.

Doug Casey: Western Civilization has its origins in ancient Greece. It’s unique among the world’s civilizations in putting the individual—as opposed to the collective—in a central position. It enshrined logic and rational thought—as opposed to mysticism and superstition—as the way to deal with the world. It’s because of this that we have science, technology, great literature and art, capitalism, personal freedom, the concept of progress, and much, much more. In fact, almost everything worth having in the material world is due to Western Civilization.

Ayn Rand once said “East minus West equals zero.” I think she went a bit too far, as a rhetorical device, but she was essentially right. When you look at what the world’s other civilizations have brought to the party, at least over the last 2,500 years, it’s trivial.

I lived in the Orient for years. There are many things I love about it—martial arts, yoga, and the cuisine among them. But all the progress they’ve made is due to adopting the fruits of the West.

International Man: There are so many things degrading Western Civilization. Where do we begin?

Doug Casey: It’s been said, correctly, that a civilization always collapses from within. World War 1, in 1914, signaled the start of the long collapse of Western Civilization. Of course, termites were already eating away at the foundations, with the writings of people like Jean-Jacques Rousseau and Karl Marx. It’s been on an accelerating downward path ever since, even though technology and science have been improving at a quantum pace. They are, however, like delayed action flywheels, operating on stored energy and accumulated capital. Without capital, intellectual freedom, and entrepreneurialism, science and technology will slow down. I’m optimistic we’ll make it to Kurzweil’s Singularity, but there are no guarantees.

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It only costs about 20 grand to get away with murder, by Simon Black

Simon Black’s weekly collation of government-related absurdities, from sovereignman.com:

Are you ready for this week’s absurdity? Here’s our Friday roll-up of the most ridiculous stories from around the world that are threats to your liberty, your finances, and your prosperity.

Kentucky Governor Pardons Murderer after family’s fundraiser

Kentucky Governor Matt Bevin lost reelection in November.

But the governor still had some campaign debt to retire. And it’s not easy to convince people to donate to a campaign that already lost.

Still, one family managed to raise over $20,000 for the governor at a fundraiser they held for him after he lost the election, but before he left office.

Why would they do this? Perhaps it is related to the fact that a few weeks later, Governor Bevin pardoned the fundraiser’s brother– a convicted murderer.

The brother was serving a 19 year sentence for dressing as a cop, invading a man’s home, and shooting him to death.

Believe it or not, that wasn’t the only questionable– to say the least– pardon of the 428 issued by the governor since he lost reelection.

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The Greatest Swindle in American History… And How They’ll Try It Again Soon, by Jeff Thomas

Governments are broke, and they’re only going to get more and more rapacious. From Jeff Thomas at internationalman.com:

International Man: Before 1913 there was no income tax, and the United States was a much freer country. Initially, the government sold the federal income tax to the American people as something only the rich would have to pay.

Jeff Thomas: Yes, exactly. It always begins this way. The average person is always happy to see the rich taken down a peg, so this makes the introduction of the concept of theft by the government more palatable. Once people have gotten used to the concept and accept it as being perfectly reasonable, then it’s time to begin to drop the bar as to who “the rich” are. Ultimately, the middle class are always the real target.

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United We Fall, Divided We Stand, by Robert Gore

Unity is not all it’s cracked up to be.

Everything I said is contained in a single word—collectivism. And isn’t that the god of our century? To act together. To think—together. To feel—together. To unite, to agree, to obey. To obey, to serve, to sacrifice. Divide and conquer—first. But then—unite and rule. We’ve discovered that one at last. Remember the Roman Emperor who said he wished humanity had a single neck so he could cut it? People have laughed at him for centuries. But we’ll have the last laugh. We’ve accomplished what he couldn’t accomplish. We’ve taught men to unite. This makes one neck ready for one leash. We found the magic word. Collectivism.

Ellsworth Toohey to Peter Keating, The Fountainhead, Ayn Rand, 1943

Countless commentators have decried disunity. They fret about our divided nation, warn of impending civil war, and implore us to come together to avert it. Unity’s desirability is taken as given, but what if the longed-for unity is that of passengers on a jet plunging into the ocean? A reappraisal of disunity is in order.

Unity was doomed with the passage of the 16th, or Income Tax, Amendment. It’s hard to feel any goodwill towards a government that forcibly relieves you of what you’ve produced, benefitting itself and those to whom it redistributes. The income tax divides the country into makers and takers, a division that cannot be bridged.

For the productive, “Unite!” is a poisonous bromide, code for: support your own slavery. For a long time they bit their tongues and holstered their weapons as perpetually expanding government and its partner in crime, the Federal Reserve, took an increasing portion of what they produced, made it increasingly difficult to produce, loaded the country with a pile of debt and unfunded liabilities that cannot be paid, and depreciated the unit of exchange. Boxed in, a shrinking minority, the country they and their productive forebears built circling the drain, some are finally realizing they are underwriting their own servitude.

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Prior to 1913

https://www.theburningplatform.com/2018/08/23/prior-to-1913/

Socialism Won, by Robert Gore

If she’s elected and goes to Washington, socialist Alexandria Ocasio-Cortez will feel right at home.

Socialism: “A political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by community as a whole” (Oxford Dictionary), has been in the news lately. The most interesting aspect of the stories and commentaries is what tense the writer uses. Most use the future tense, heralding or decrying the impending arrival of socialism, or simply noting that it’s a possibility.

It’s the wrong tense. The past tense is the correct one, socialism arrived long ago. In the US, it unpacked its bags February 3, 1913, the day the Sixteenth, or Income Tax, Amendment was ratified. When the “community as a whole”—a euphemism for government—has first call on individuals’ incomes, socialism has established its vital beachhead. Everything from there on out is a mop-up operation.

For what is “the means of production, distribution, and exchange”? The minds, bodies, time, and effort of individual producers, which the income tax expropriates. Once a government steals those, there’s nothing it cannot steal, including, via regulation, the ability of producers to produce. To impose socialism on a nation, first impose it on its individuals.

The cherry on 1913’s socialist sundae was the establishment of the Federal Reserve, which began the transition of the US monetary system from the gold standard to fiat debt, the value of which is now decided by political and bureaucratic whim. It was another expropriation, stealth theft via currency depreciation and inflation.

Some are treating “avowed socialist” Alexandria Ocasio-Cortez’s primary victory over Democrat war-horse Joe Crowley as a watershed moment. Assuming she wins the general election, she’ll join 434 other socialists in the House of Representatives. That’s not a watershed political moment, it’s a watershed truth-in-advertising moment. She’ll be one of the few socialists there who admits to it.

The partisans on both sides of the barricades are a hundred years too late. The battle is over, victory to the socialists. In the US, it’s impossible to find an industry or economic activity that’s free from government ownership or regulation. Governments have their hands in agriculture, manufacturing, communications, finance, insurance, banking, transportation, technology, housing, medical care, advertising, entertainment, warfare, welfare, charity, and every other human endeavor of consequence. When children need to get a permit and pay a fee to set up a sidewalk lemonade stand, what’s left?

Judging by the reaction to Ocasio-Cortez’s victory, “socialist” is still an odious term in some quarters, mostly those precincts which still pay lip service to free markets and capitalism. Republicans long ago jettisoned freedom and made their peace with the income tax, the Federal Reserve, welfare and warfare states, and ever-expanding government; their horror is merely rhetorical. The only parts of Trump’s platform that were noncontroversial with them were his vows to increase military spending and not cut entitlements. This in a nation over $21 trillion in debt, with an estimated $200 trillion of additional unfunded liabilities.

Unlike many of us in the hinterlands, those who inhabit the swamp rarely have to answer the question: does it work? When the answer is no in Washington, it’s a justification for an expanded budget and more power. Effectiveness is the hallmark of what remains of honest American enterprise, where whatever your “it” is has to work, or you don’t get paid. Those who have only worked in dishonest enterprise— government and its satellites—are instinctively hostile to that requirement and to those who make things work.

Socialism doesn’t work; history is littered with its failures. That is why it’s embraced. Government derives its power from coercion and violence. It is no coincidence that the twentieth century, history’s most socialistic, has also been its most murderous, with governments inflicting an estimated 100 to 200 million deaths.

Socialism’s failure, death, and inevitable restrictions of liberty account for its odium among those who oppose it. The clearest lesson of history is the most ignored. Man versus the state is history’s overarching theme. Humanity flourishes when it’s free to do so (man wins) and deteriorates when it’s not (the state wins).

There is only one way to eradicate a weed without pesticide: pull it up by its roots. Well over 99 percent of arguments against government—inadequate border security, military interventions, out of control spending and debt, the national security state, loss of liberty, etc.—essentially try to kill the weed by pulling off its leaves and stems, but leave the roots intact. As long as there is unquestioning acceptance of the government’s self-granted right to forcefully relieve the productive of their honestly earned incomes, those issues amount to diversionary sideshows.

Since the dark year 1913, government has grown relentlessly larger, more powerful, and more corrupt. The tax take has gone one direction. Even with all that loot, the government has plunged into the abyss of debt and unfunded liabilities. The US has become an oligarchic empire spanning the globe. At least half its population rely on the state for some or all of their sustenance. Occasionally the socialists have lost battles, but those have amounted to mere tactical retreats. They’ve won the war.

Imagine a government that had no claim on people’s incomes and the monetary system was an honest gold standard. That such a state of affairs seems inconceivable is testament to widespread ignorance of history. This was the actual state of affairs pre-1913, when all levels of government in the US spent less than 10 percent of the GDP, as opposed to more than 40 percent now.

How much of an issue would illegal immigration be if the government paid out no benefits to either immigrants or citizens? The immigrants who arrived would be here to work, and it would be much easier to ensure that they went through the proper channels of citizenship.

Cut down government by 80 to 90 percent and the military would shrink to defense of the US’s eminently defensible borders and tending to a worst-case nuclear arsenal. You’ve got to think the costly Big Brother surveillance apparatus would shrink, too, maybe down to nothing.

There would be no unfunded liability problem, because government would be out of the pension, medical care, and redistribution businesses. A government that couldn’t inflate away its debts with more of its own or its central bank’s fiat debt would be less inclined to borrow. Creditors would be less inclined to lend, because the government would have no call on incomes.

Such a reversion might even work a “miraculous” change in the American character, a rebirth of values like the work ethic, self-reliance, individualism, community involvement, and private charity. One of socialism’s great myths, the opposite of the truth, is that only the government can help out those in need.

An appreciable part of the US’s unprecedented, privately generated bounty has always been redistributed by people acting on their own charitable impulses, not at the point of a government gun. Regular people, not just philanthropic millionaires, help their families, friends, and—through a mind-boggling variety of eleemosynary causes and organizations—total strangers.

Which gives the lie to socialists’ argument that “the masses” (they love that demeaning term) cannot handle freedom, they need to be guided and governed by an expert and virtuous elite. If the human psyche cannot handle freedom, it most certainly cannot handle unlimited power. The last 105 years of elite-initiated horrors offer conclusive proof. Wars, death camps, and genocide didn’t bubble up from they bottom, they’re ordained from the top.

If we don’t insist proudly that we have the first and only legitimate claim to what we’ve honestly earned, if we aren’t willing to fight for it, we are not and never will be free. And that’s why we need all the sideshow issues—to divert our attention from our well-deserved servitude.

You Should Be Laughing At Them!

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Taxation is Theft, by Andrew P. Napolitano

Taxation is theft and Social Security is a Ponzi scheme. Both are true statements, but in “conventional” political discourse, saying so will earn one condemnation. Here’s an article that cuts through the BS, from Andrew P. Napolitano at mises.org:

With a tax code that exceeds 72,000 pages in length and consumes more than six billion person hours per year to determine taxpayers’ taxable income, with an IRS that has become a feared law unto itself, and with a government that continues to extract more wealth from every taxpaying American every year, is it any wonder that April 15th is a day of dread in America? Social Security taxes and income taxes have dogged us all since their institution during the last century, and few politicians have been willing to address these ploys for what they are: theft.

During the 2012 election, then-Texas Gov. Rick Perry caused a firestorm among big-government types during the Republican presidential primaries last year when he called Social Security a Ponzi scheme. He was right. It’s been a scam from its inception, and it’s still a scam today.

When Social Security was established in 1935, it was intended to provide minimal financial assistance to those too old to work. It was also intended to cause voters to become dependent on Franklin Delano Roosevelt’s Democrats. FDR copied the idea from a system established in Italy by Mussolini. The plan was to have certain workers and their employers make small contributions to a fund that would be held in trust for the workers by the government. At the time, the average life expectancy of Americans was 61 years of age, but Social Security didn’t kick in until age 65. Thus, the system was geared to take money from the average American worker that he would never see returned.

Over time, life expectancy grew and surpassed 65, the so-called trust fund was raided and spent, and the system was paying out more money than it was taking in – just like a Ponzi scheme. FDR called Social Security an insurance policy. In reality, it has become forced savings. However, the custodian of the funds – Congress – has stolen the savings and spent it. And the value of the savings has been diminished by inflation.

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