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In My Humble Opinion
Jodi McDade
Sometimes changes can be good, but sometimes changes can become something very different from what they were intended to be.
When our country was founded and up until 1913, we had a very different method of funding our government. There was no income tax!
Until the Industrial Revolution there was not much in the way of producing our own goods. Most people lived off their land and provided for themselves while some did own businesses to provide services and goods.
Our government was originally funded mainly by tariffs on foreign goods brought into the country, but also taxed tobacco and whiskey sales. The American Industrial Revolution occurred from approximately 1870s, after the Civil War, until 1914, as we were entering the period before WWI. Our country was beginning to move from handcrafted goods to machine production of things like steel, electricity and automobiles.
We also saw the textile industry and railroads come into existence. Most of these innovations came to us from the British Industrial Revolution that occurred from 1760 to 1840.
So, as Americans began to build an industrial base and produce their own goods, tariffs on imported goods helped encourage everyone to buy American made goods more than those coming from other countries.
Many Americans moved from farms to cities for the jobs that were offered. Towns and cities were built in the area of the industries, homes were built, schools and churches opened.
Some of the founding fathers borrowed money from France and the Netherlands to finance the Revolutionary War. Those debts were paid off by Alexander Hamilton in 1835 when an American banker, James Swan, bought the debt from France and then resold it to others.
During the Civil War President Lincoln created a 3-5% income tax to cover the expenses (probably just for those of the Union). That tax was repealed in 1872. But, in 1913, as we were facing the threat of WWI, Congress passed the 16th Amendment to the Constitution that made income taxes permanent.
This was a move by President Woodrow Wilson, our first progressive president, to reduce tariffs and move the funding of the country on to the backs of the high earners and wealthy.
Unbelievably, from 1944 to 1963 these people paid up to 94% of their income for taxes. After that, taxes began to be placed on all working people.
The amount of national debt is what drives the amount of income tax revenue that is required to operate our government today. The last time our budget was balanced or had a surplus was under President Bill Clinton. As of April 11, our national debt is $36.21 trillion; we owe most of it to Japan and China. Every day we pay approximately $2.6 billion in INTEREST ALONE, and we borrow more to pay that. Now, the kicker – our national debt is 23% MORE than our gross domestic product (income).
There aren’t many options available that will get us out of debt except to cut all expenses to the bone and stop borrowing more money, and/or find new sources of income like raising taxes on the citizens OR putting tariffs on foreign goods coming into our country. That last option would reignite American industries and create jobs for people who are willing to work for a living.
Now, think about this as if it was your income vs. debt. Let’s say you make $3,600 a month with $500 held out for federal and state taxes, insurance, Social Security/Medicare. So now you bring home $3,100 a month.
Your rent/house payment is $1,200; you have two car payments totaling $900; car insurance $150; daycare for two kids of $800; utilities of $300; and medical bills of $200.
You are now in the hole by $450, but still need to pay for groceries, gas for two cars, clothes for growing children, etc. Of course this is if you only have one income – it would take two incomes and still cut things close.
So back to the issues with our government and the two options we face. Would you rather the government be financed with tariffs on other countries and cutting out waste and fraud, OR by raising your income taxes?
Personally, I would much rather charge the tariffs for goods produced outside America, bring back American-made goods and cut the waste and fraud that is being found in all of our government agencies! I don’t mind paying a FAIR share of taxes, but I do not think everything should fall on the backs of the working people.
I’m sorry this has been somewhat complicated, but I felt like some people need to think about things in perspectives that they can understand. I have trouble thinking anyone would really like to pay more taxes! And I REALLY don’t want to think about the day China will call in our debt and take over control of our country!
Changes are scary, but sometimes necessary. Choose your poison – but choose wisely! God bless you all!
