Wednesday, November 24, 2010

CUTTING COSTS OF GOVT #4 - Taxes

The Articles of Confederation adopted in 1781 reflected our forefathers fear of a strong central government in America and so retained much of the power in the states. There was no intention to use a tax on the people to equalize income or wealth.

Indeed, Thomas Jefferson once wrote regarding social welfare that "To take from one, because it is thought his own industry and that of his father has acquired too much, in order to spare other who (or whose fathers) have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, to guarantee to everyone a free exercise of his industry and the fruits acquired by it"

For most of our nation's history individual tax payers rarely had any significant contact with federal tax authorities of the government. The government's income was derived from excise taxes, tarrif and custom duties.

The federal, state and local tax systems in the United States have been marked by significant changes in the last 50 to 100 years in response to a change in the way the government has percieved it's responsibility to take care of the people with a primary purpose of being reelected to office. THE PEOPLE, IN RESPONSE, HAVE BECOME WEAK AND DEPENDANT.

DO YOU KNOW THAT THERE WAS NO TAX ON AN INDIVIDUAL'S INCOME UNTIL MY PARENT'S LIFE TIME--THINK OF THAT!

When Dad was a young man, Congress passed, FOR THE FIRST TIME EVER, a new income tax law with rates beginning at at 1%, YES, 1%, rising to 7% for tax payers with income in excess of $500,000. TAX FORM 1040 WAS INTRODUCED.

Can you imagine your life without the burden of paying income taxes? WELL, NEVER LET THE CAMEL PUT HIS NOSE UNDER THE TENT!

Then, Congress came back and passed a Revenue Tax Act raising the lowest tax rate from 1% to 2% with the highest rate of 15% on incomes in excess of 1.5 Million.

CONGRESS HAD THE BIT IN THEIR TEETH!

HAVING GOT BY WITH THE FIRST TIME EVER INCOME REDISTRIBUTION IN 1916, in 1918 they AGAIN raised the lowest rate to 6% and the top rate to 77%.

From that point on there has been no limit on the willingness of Congress, followed by state and local governments, to ursurp the people's money.

WHEN RONALD REAGAN APPEARED ON THE SCENE IN 1981 HE INTRODUCED THE TAX RECOVERY ACT WHICH FAVORED A 25% REDUCTION IN INDIVIDUAL TAX BRACKETS AND BROUGHT THE TOP TAX BRACKET DOWN TO 50%.

Although the government's income was reduced from the reduction in the tax rate schedule, Congress continued to give more and more money away in various welfare benefits, something for nothing but paid for by the "doers" in our country. A tax creep continued until George W. Bush again reduced taxes.PRESENTLY, PRESIDENT OBAMA OPENLY ADMITS TO A "SPREAD THE WEALTH" POLICY. Take from the rich to give to the poor, isn't that EXACTLY what he said to Joe the Plumber? He has even opposed the right of the state of Arizona to protect themselves from foreign invasion, clearly a state's right intended by our founders. REREAD JEFFERSON'S COMMENTS ABOVE!

IT IS UP TO THE PEOPLE--Thats you and me, my friend--TO STOP THIS SHIFT FROM WHAT HAS MADE AMERICA GREAT - The pursuit of happiness, not the guarantee of happiness. A CRUCIAL FREEDOM IS ABOUT TO BE LOST AS THE "SO CALLED" BUSH TAX CUTS ARE ABOUT TO EXPIRE. Your vote in the last election may have saved the day here, time will tell!

In 1989 I had my best month ever as a Stock Broker. Preparing myself with study, qualfying for state and federal licenses, working smart, working many, many hours--far more so than the average broker--wisely using support and investing my own personal capital, I earned $40,000 in October of that year. After taxes, my take home pay was $18,000. ALTHOUGH IN ACCORDANCE WITH EXISTING LAW, TAKING MY HARD EARNED MONEY WAS UN AMERICAN, IN MY OPINION.

ADDING INSULT TO INJURY, Congress passed a retroactive law that sales awards were taxable. PREVIOUS TO THE LAW BEING PASSED, my extremely hard work that year qualified me for trips with my wife to Maui, Ireland and England, and Austria as well as a very expensive cruise. I HAD TO COUGH UP THOUSANDS OF DOLLARS TO PAY TAXES ON MY SALES AWARDS, NOT ON INCOME, MIND YOU, ON AWARDS FOR HIGH PERFORMANCE.

Go back and reread the paragraph above and see how this experience compares with the expressed writing of Thomas Jefferson, the writer of the U.S. Constitution. THE GOVERNMENT TOOK THE FRUITS OF MY LABOR TO GIVE TO OTHERS WHO DID NOT EARN THEM.

FED UP, I RETIRED! All the capital I was raising to build or expand a wide assortment of business dried up. OUR COUNTRY WAS THE LOSER AND THAT PAINS ME!

Was there a winner? Yes, people like my neighbor, a high school dropout and a loser in general, who is currently drawing unemployment, refusing to accept any of many jobs that has come his way, getting food stamps and making regular trips to the free food banks.


ALTHOUGH RETIRED, I AM STILL BEING TAXED TO PAY FOR HIS LACK OF INDUSTRY! They are literally taking my RETIREMENT INCOME, which I EARNED by laboring hard and long and LIVING CONSERVATIVELY, and giving it to this shiftless person and entire generations just like him.

THIS IS BECOMING A LONG BLOG. CONSIDER IT TO BE THE FIRST INSTALLMENT OF SEVERAL ON TAXES.

I KNOW I COULD REDUCE THE COST OF GOVERNMENT. SO CAN OUR LEADERS IF WE HOLD THEIR FEET TO THE FIRE.

Thank goodness for the Tea Party who is doing just that.

God Bless you and God Bless the USA.

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