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The Essence of Liberty, Part 84
A Summary of: Those Dirty Rotten Taxes: The Tax Revolts that Built America by Charles Adams
Summarized by Ashlee Worley
Edited by Dr. Jimmy T. (Gunny) LaBaume
The Tyranny of the Income Tax 1913 � ????
The tax principles of the founders had begun to disappear by the close of the nineteenth century. The idea of limited government was replaced with paternalism at home and imperialism abroad. Words that once stood for the noblest ideals of Western society took on strange and alien meanings.
Even though the rate was a paltry 2%, rebellion against the income tax began with the very first peacetime tax on income. Modern income tax rebellions have taken a different course from the tax rebellions of the past. Those of the past involved riots and violence. In modern times income tax rebellions are quiet. They take place on the political field, in the schemes of tax planners, in peaceful emigration abroad, in the underground economy and in the privacy of tax havens�some legal and some not-so-legal.
Riots generally originate with the masses. Taxes of the past provoked rebellion because they were uniformly applied. However, the income tax is primarily oppressive of the rich. So, due to its exemptions and low rates for the lower classes, the income tax makes riots unlikely. The rich were the targets from the beginning. However, they did not take it lying down. Their wealth simply began to disappear�as if by magic.
For 200 years, no tax has been more �debated, discussed, cussed, ridiculed, praised, and in the end, evaded, than the income tax.� By the beginning of the twentieth century it had become the main means for running the modern state, financing wars, and introducing socialism in its many forms. The current income tax is a revenue system that threatens liberty at every turn and we brought most of it on ourselves. A frequently occurring lesson of tax history is that all good tax systems tend to go bad. Our income tax is a perfect example.
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At the time this work was completed, Ashlee Worley was a student in the School of Agricultural and Natural Resource Sciences at Sul Ross State University where Jimmy T. LaBaume, PhD, ChFC is a Professor of Economics and Statistics.
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This message has been edited by Dick Gaines from IP address 71.1.245.84 on Jun 10, 2007 4:34 PM
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