Last week, while visiting the Big Apple, an old friend asked me if I was a member of the TEA Party. “Aren’t we all,” I responded?
Or is it just me who thinks we’re taxed plenty and those creating the laws seem too tan, too well fed, too rested?
TEA stands for Taxed Enough Already. Who other than Buffett, and an assortment of wealthy celebs like Chelsea Handler, find the taxation system in this nation fair … and money well spent?
BTW, when Buffett remarks about paying too little in taxes he’s referencing his capital gains tax bracket (from stocks) which, yes, is lower than what his secretary pays. Her earned-income tax bracket (like W-2 earners), or what most of us pay, runs in the 30% to 40% bracket.
If you don’t like these odds, then choose wiser when at the polls.
So instead of whining about it, Buffett could kick in more …. and you could choose to build your wealth and expect the elected officials to continue to figure out ways to extract that money from you.
Where Did It Begin?
So what is taxation? Where did it begin? Were there ever times in our history where it was lifted? And how the hell has it gotten so out of hand?
Well, according to Information Please® Database:
“The nation had few taxes in its early history. From 1791 to 1802, the U.S. government was supported by taxes from distilled spirits, carriages, refined sugar, tobacco and snuff, property sold at auction, corporate bonds, and slaves. The War of 1812 came at a high cost and resulted in the nation’s first sales taxes on gold, silverware, jewelry, and watches. In 1817, Congress did away with a lot of these taxes, relying on tariffs on imported goods to provide sufficient funds for running the government.”
“In 1862, the Civil War needed revenue, so Congress enacted the nation’s first income tax law. It was a forerunner of our modern income tax system based on the principles of graduated, or progressive, taxation; withholding income at the source. During this period, a person earning from $600 to $10,000 per year paid tax at the rate of 3%. Those with incomes of more than $10,000 paid taxes at a higher rate. Additional sales and excise taxes were added, and an “inheritance” tax also made its debut. In 1866, internal revenue collections reached their highest point in the nation’s 90-year history — more than $310 million, an amount not reached again until 1911.”
“The Act of 1862 established the office of Commissioner of Internal Revenue. The Commissioner was given the power to assess, levy, and collect taxes, and the right to enforce the tax laws through seizure of property and income and through prosecution. The powers and authority remain very much the same today.”
Taxation Went Bye-Bye When Not Needed
The income tax, as we know it, in the U.S., wasn’t around 100 years ago. There were situations when taxation was created to cover certain government expenses and once that money was no longer needed, the tax went bye-bye. And back then, in contrast to now, as a nation, we had the brightest future, was a world leader, we had no debt, our middle class was bustling, and mom stayed at home to raise the kids.
In other words, big government is more of a strain on the system than a help. Back then, wars were fought for liberty. Today they’re fought for politics. Back then taxes were to enhance a better life. Today taxes enhance a better life for politicians who have made a career out of their part-time, vacation-rich positions. Back then George Washington initially refused an income. Today’s politicians have voted themselves hundred’s of thousands of dollars with all sorts of on-going benefits you, the tax payer, are not entitled to.
Proof why politicians need to be reigned in and government isn’t needed for anything more than overseeing our roadways and street lights.
To read the Information Please® article in its entirety, click here and see for yourself what a bunch of slouches our current politicians have grown into: History of the Income Tax in the United States
In other words, we’re all members of the TEA party to some extent.
Now only if biased media would study and blab less.
Renegade Financial Planner
