“Observations”©

Donald S. Conkey

 

Date: April 8, 2010 - # 1015 – Subject: On tax day remember: “Socialism is Poverty Divided Equally”  (4349)

 

A week from today, April 15, is America’s dreaded tax day, a day of mourning as taxpayers rush to the post offices to post mark their “returns” by midnight. Never did the Founding Fathers dream their nation would reject their consumption tax and create a graduated income tax system, a system that likely has the Founders rolling in their graves. America’s first revolution, spearheaded by Samuel Adams, began over a tax on imported tea. What would Adams say today if he were to witness the abusive and oppressive tax system instigated by congress since 1913 because the Democratic Party tried to embarrass the Republican Party? Now both parties embarrass all tax payers.

With taxes on our mind what better time to review the history of America’s income tax laws. It’s doubtful if any alive today remember the days when there were no income taxes, after all they were unconstitutional until 1913. This is a Ripley’s “Believe It Or Not” story. But such days did exist, and not so many years ago.

Article 1, Section 8 of the Constitution reads: “Powers Delegated to Congress: Enumerated powers: 1. The Congress shall have power to lay and collect taxes, duties, imposts, and excises (sales taxes), to pay the debts, and provide for the common defense and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the United States;. . . .” Clear concise words. No income tax mentioned.           

The sixteenth amendment was ratified on February 12, 1913. It reads: “The Congress shall have power to lay and collect taxes on incomes, from whatever sources derived, without apportionment among the several states, and without regard to any census or enumeration.”  The “barn door was open – never to be closed again!”  President Franklin D. Roosevelt began using “payroll deductions” in 1943 to help pay for World War II, but when Congress found out how easy it was to collect taxes through payroll deduction it was never rescinded.

Here is how our present income tax system was created. Teddy Roosevelt, a Progressive Republican, was president and the Democrats were anxious to regain power. In April 1909 Senator Joseph W. Bailey, a conservative southern democrat strongly opposed to income taxes, decided to embarrass the republicans by forcing them to openly oppose an income tax bill similar to other income tax bills previously introduced, but always defeated. Bailey fully expected his tax bill to have strong opposition and to be easily defeated. But instead a growing element of Progressives, including Roosevelt, supported the bill, giving it the votes necessary to pass both houses. 

Unable to defeat the bill congressional leaders panicked. They then introduced a “Constitutional Amendment” hoping it would be defeated by the states. But the proposed amendment soon took on a life of its own, picking up strong support with its powerful slogan: “Soak the Rich.” The people rallied behind this slogan and the amendment was ratified by the states in four short years. “Soak the Rich” has been used by Democrats ever since, dividing America’s rich and poor all across the nation. ‘Soak the Rich’ continues to divide the nation today.

Passage of this amendment nullified the fourth amendment “against unreasonable searches and seizures.” In part, amendment four reads: “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.” This was bad legislation.