For my friends under 50

Progressive politicians know that revisionist US History has been taught in our public school systems for the past 40 yrs. They are also fully aware that, by a large majority, academic leadership, in our colleges and universities, is fully aligned with the liberal/progressive philosophy.  By clever support and cover provided by omission, the larger percentage of media outlets and ‘journalists’ allow them to say and propose greater, empirically proven, destructive policies relatively unchallenged. It is not the debate that is waking up America. IT IS THE RESULTS!

President Obama’s “Hope and Change” was marketed as new. However, that was not the case, as can be clearly seen now.  It is the same progressive dribble that has been repeated to our detriment since the early 1900’s.  If you need a sneak preview into its absolute results, read or watch any current news story about Britain or Europe.

2013 will mark the 100^th anniversary of two well known progressive policies.  First, was the passing of the 16^th Amendment, which started the modern day income tax.  Second, was the creation of the Federal Reserve.  Neither, of course, was marketed as solutions that would create many more problems. They both were touted as equitable answers to minimizing disparity. The income tax passed to ‘make the rich pay a fair share’. The Federal Reserve created so the economy would not experience recessions or depressions.

One should note that in 1913 the actual “Rich” started at $20,000.00 per year.  99% of the population was below that income level.

Following is a link and excerpt, as well as, a tax history PDF. Please draw your own conclusion.

Mine is: “When someone wants to go after the ‘rich’ you need to hang on to your wallet.”

www.libertyinkjournal.com/1664-our-history-in-taxes-part-four-1900-to-1945
CAROL COCHRANE, CPA CMA
The 20th century began with the continuation of high tariffs and excise taxes. Many people became concerned that these taxes fell disproportionately on the less affluent. Citizens discussed many different tax plans to remedy the situation. Congressmen from agricultural areas proposed reinstating an income tax in order to circumvent a federal property tax that would devastate their land-rich constituents.
In October 1913, Congress passed the income tax law after 36 states ratified the 16th Amendment to the Constitution. Initial rates ranged from 1-7 percent. The top rate of 7 percent applied to those with income in excess of $500,000. Over 99 percent of the population did not owe any tax under the formulas of the original income tax act. Many citizens who were not subject to the tax, chose to voluntarily pay 1 percent of their income to the federal government, believing it to be their patriotic duty.  
Prior to the passage of the 16th Amendment, citizens conducted their financial affairs with little or no interaction with government agencies. Now the government had the legal right—and need—to know all details of economic events for each citizen. To protect the taxpayer’s privacy, 1916 saw Congress pass a bill requiring that tax returns be kept confidential.  
The relatively low rates charged for the income tax came to an abrupt end with the United States’ entry into World War I. The 1916 Revenue Act effectively doubled the tax rates and added a 15 percent rate on income in excess of $1.5 million. It also levied taxes on estates and excess business profits. The following year saw another Revenue Act pass. The Act of 1917 included a 16 percent rate to taxpayers who earned $40,000. Additionally, the individual who made in excess of $1.5 million went from owing 15 percent to owing 67 percent. Yet more increases occurred the following year. The Revenue Act of 1918 raised the bottom rate from 2 percent to 4 percent and the top rate escalated to 77 percent. The federal government’s tax revenue increased from $761 million in 1916 to $3.6 billion in 1918. The percent of the population paying the income tax increased from 1 percent of the population in 1913 to 5 percent of the populace in 1918.  
The Roaring Twenties saw increasing revenues for the federal government from the income tax. Congress responded to the surplus by cutting the rates five times during this period. Ultimately they returned the bottom rate to the 1 percent level originally levied in 1913 and reduced the top rate to 25 percent. As the rates lowered, the economy continued to improve.  
The stock market crashed in October 1929, which resulted in lower government tax receipts. To combat the loss, Congress passed and the President signed the Tax Act of 1932. This act dramatically increased tax rates from the 1.5 percent at $4,000 and 25 percent at $100,000 for the top rate to 4 percent at $4,000, 56 percent at $100,000, to a top rate of 63 percent at $1 million.  
Not content with the revenues from this act, President Franklin D. Roosevelt increased tax rates yet again. He also added new taxes to further his progressive belief that the federal government should redistribute wealth. The Social Security Act became law in 1935. Not only did this act provide aid to the aged, needy, handicapped and certain minors, it established payments through unemployment compensation, for workers who lost their jobs. Funds to provide these benefits came from a 2 percent tax on employee’s earnings. Half came directly from the employer and the other half from the worker. This 2 percent tax applied to the worker’s first $3,000 of wages earned. The Revenue Act of 1936 established the lowest income tax rate at 4 percent and the top rate at 79 percent.  
By the end of Roosevelt’s presidency, he had succeeded in fundamentally altering the nature of the income tax. His reduction of exemption levels resulted in increasing the number of income tax payers from 4 million in 1939 to 43 million in 1945.  He effectively changed the income tax’s original goal of having only the richest citizens or corporations pay income tax, to that of having most wage earners pay a large portion of their earned income to the federal government. Citizens who made $500 were now subject to the bottom tax rate of 23 percent. Rates ranged from 23 percent at the low end to 94 percent on taxpayers with income in excess of $1 million. He also authorized the payroll deduction method of income tax withholding. This system greatly reduced the transparency of the tax. Wage earners saw the net amount of money received for their labor. Rates could be increased without most citizens realizing just how much was being withheld from their gross pay.  

http://www.taxfoundation.org/publications/show/151.html