America's Astonishing Tax History...

I decided to "bullet point" the finer points in our country's astonishing tax history, figuring it would help you better understand why we really need to fight for change. You'll see quickly where our Nation started, and where we've ended up. I personally was shocked to find out that Americans "turned a blind eye" to taxation much more recently than I could have possibly imagined.

I was truly amazed to learn how easily we, the American people, have been manipulated into our current tax situation. It's not hard to see, after reviewing our nation's history on taxation, why we now find ourselves at this crossroads in history. But, we will see upon that review, that it's time for a change.

• 1776 – No income tax existed. A tax was placed on alcohol, carriages, sugar, tobacco, and the like. Tax on imports, too.



• 1812 – Sales tax was placed on luxury items to cover the cost of war with Great Britian.



• 1817 – After war, citizens pressed to get rid of internal taxes. Tax on imports funded the government.



• 1861 – Civil War brought about circumstances where Congress felt it necessary to pass a 3% tax on incomes over $166,700 (in today’s dollars) and a 5% inheritance tax, affecting mostly the rich.



• 1872 – After the war, citizens pressured Congress to eliminate the income tax. Again, they taxed alcohol and tobacco instead.



• 1894 – Congress tried to introduce an “Act to Reduce Taxes,” a 2% tax on everyone who made $50,000 (in today’s dollars). All government officials would be exempt. The Income Tax was found unconstitutional.



• 1894-96 – One party called for a constitutional amendment. The other party opposed it. The party for the amendment introduced a new Income Tax bill. The party opposing it, played political games and said they’d support the bill if a constitutional amendment was passed (not believing for a moment that it would be ratified by 2/3 of the states). Because the 16th amendment held promises to “soak the rich,” public support was high and it passed.



• February 12, 1913, 16th Amendment to the Constitution was passed. Hello, Income Tax. Goodbye constitutional right to your own money!



• 1917 – A law was passed to keep Congress from withholding money from our paychecks (something that was enabled by the 16th Amendment).



• 1942 – Government used American patriotism to garner support for withholding, saying “it is your privilege to help your government by paying taxes” to help pay for World War II.



• 1943 – Deal was sealed when government promised to forgive taxes from the previous year to all those willing to have money withheld monthly from their paychecks, and they wouldn’t have to pay until March 31. American jumped on the bandwagon and the “Tax Payment Act” was passed. Shame on them, and shame on us!

“Withholding is the answer to free-spending politicians prayers.”

Neal Boortz, The FairTax Book