LJWorld.com weblogs Swampyville's - "The Banshee's Cry"
Swampyville's - "The Sixteenth Amendment"
Recently I came across an animated cartoon called "Make Mine Freedom" on You Tube. It was produced by Harding College (A christian conservative college) in 1948. It was produced soon after the Soviet Union exploded their Atom Bomb and the cold war began. It was about Capitalism versus Communism. It brought back memories of when I was eight years old and still in elementary school. At the time we had classes in Americanism versus Communism. It was later changed to Capitalism versus Communism. In the early 1950's, after the Korean War, it was discontinued and the New Age educational system began.
After watching this cartoon, I ask myself, has the times really changed. I came to the conclusion they hadn't, Just the ISMs have changed to Progressive(ism) only (both parties), with Freedom its victim.
Swampyville's Ask the Politically Correct!
Question: What was the Sixteenth Amendment?
Politically Correct Resolution:
Sixteenth Amendment (The Income Tax Law) and the Revenue act of 1913! (Wikipedia)
An income tax amendment to the Constitution was first proposed by Senator Norris Brown of Nebraska. He submitted two proposals, Senate Resolutions Nos. 25 and 39. The amendment proposal finally accepted was Senate Joint Resolution No. 40, introduced by Senator Nelson W. Aldrich of Rhode Island, the Senate majority leader and Finance Committee Chairman.
Nelson Wilmarth Aldrich (November 6, 1841 – April 16, 1915) was a prominent American politician and a leader of the Republican Party in the Senate, where he served from 1881 to 1911. (Better known today as Nelson and David Rockefeller's maternal grand-father)
Because of his impact on national politics and central position on the pivotal Senate Finance Committee, he was referred to by the press and public alike as the "General Manager of the Nation", dominating all tariff and monetary policies in the first decade of the 20th century. In a career that spanned three decades, Aldrich helped to create an extensive system of tariffs that protected American factories and farms from foreign competition, while driving the price of consumer goods artificially high—which hurt many workers and farmers. He was a party to the re-structuring of the American financial system through the institution of the federal income tax amendment, which he originally opposed, and the Federal Reserve System. He stated that he believed these reforms would lead to greater efficiency. Aldrich became wealthy with investments in street railroads, sugar, rubber and banking. His son Richard Steere Aldrich became a U.S. Representative, (Of course this isn't new - many have enriched themselves over the years by receiving inside government information) and his daughter, Abby, married John D. Rockefeller Jr., the only son of John D. Rockefeller. Her son and his grandson Nelson Aldrich Rockefeller, served as Vice President of the United States under Gerald Ford. (A family affair?)
The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows the Congress to levy an income tax without apportioning it among the states or basing it on Census results. This amendment exempted income taxes from the constitutional requirements regarding direct taxes, after income taxes on rents, dividends, and interest were ruled by the Supreme Court to be direct taxes. Something had to be done to make up for this loss in revenue. The 16th Amendment was ratified on February 3, 1913.
The United States Revenue Act of 1913 also known as the Tariff Act, Underwood Tariff, Underwood Tariff Act, or Underwood-Simmons Act, re-imposed the federal income tax following the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich Tariff Act of 1909. It was signed into law by President Woodrow Wilson on October 3, 1913. (Which gradually lowered the taxes on imports and through treaties over the years this nation has a minus in trade - making it more advantageous to move manufacturing off shore)
The Revenue Act also provided for the reinstitution of a federal income tax as a means to compensate for anticipated lost revenue because of the reduction of tariff duties. The most recent effort to tax incomes (Wilson-Gorman Tariff of 1894) had been declared unconstitutional by the Supreme Court because the tax on dividends, interest, and rents had been deemed to be a direct tax not apportioned by population. That obstacle, however, was removed by ratification of the Sixteenth Amendment on February 3, 1913. (In other words, taxes were being paid by landlords, stock and bond holders, and on the interest the banks were receiving - The Sixteenth Amendment/Revenue Act change all of this by requiring individuals to pay these taxes instead).
The Revenue Act provided additional parts to the Sixteenth Amendment:
"subject only to such exemptions and deductions as are hereinafter allowed, the net income of a taxable person shall include gains, profits, and income derived from salaries, wages, or compensation for personal service of whatever kind and in whatever form paid, or from professions, vocations, businesses, trade, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in real or personal property, also from interest, rent, dividends, securities, or the transaction of any lawful business carried on for gain or profit, or gains or profits and (income derived from any source whatever)".
The incomes of couples exceeding $4,000, as well as those of single persons earning $3,000 or more, were subject to a one percent federal tax. Further, the measure provided a progressive tax structure, meaning that high income earners were required to pay at higher rates.
It would require only a few years for the federal income tax to become the chief source of income for the government, far outdistancing tariff revenues.
Less than 1 % of the population paid federal income tax at the time. Those making $20,000 per year were taxed at 1% rate progressing to 7% for those making over $500,000 per year.
The Sixteenth Amendment was a "Progressive" tax indeed; whereby, the wealthy progressively over time paid less and the increasing middle class paid more in taxes!
Since its (16th Amendment) inception, the wealthy have sent their lobbyists in and had the income tax system changed where they pay little or no income tax at all. Yes, the wealthy has more deducted from their income during the tax year; However, with all the loop holes they've had created, they receive most of this back when they file their income tax statement in April of the following year. There is nothing wrong with being wealthy as long as it was gained "fairly" and not through corruption of the Tax System or using the Tax System to destroy your competition! Don't fall for the politicians using the Wealth/Race card to fulfill their agenda!
The Progressives and their benefactors have loaded both barrels of their shotgun (Congress) and they're aiming it at the middle class!
"CAUSE LATET, VIS EST NOTISSIMA" (The cause is hidden, but the results are well known)