Thursday, February 20, 2014

Deception and the Income Tax

Over a century ago the 16th Amendment was added to our Constitution. The Progressives sold the income tax by:

***emphasizing the extremely low tax rates, and that most would pay no tax at all

***stressed its simplicity

***pointed to problems and controversies surrounding tariffs

The original tax exempted anyone earning less than $3,000/year or married couples earning less than $4,000/year. Those with incomes between $20,000 and $50,000 would pay 2% and those with incomes over $500,000 would pay 7%. This was the top rate.

The income tax allowed the federal government - and state and local governments – to grow rapidly.

Thursday, February 6, 2014

The War for Southern Independence

In the 17th and 18th centuries, England was a heavily-populated, industrial and naval power. Its largely agrarian colonies provided raw materials and buyers for the finished goods. England heavily taxed the colonies without giving them a voice in Parliament.

In the 19th century, the North was a heavily-populated, industrial and naval power. The South was largely agrarian and provided raw materials and buyers for the finished goods from the North. The North kept prices high by placing heavy tariffs on foreign goods.

When Abraham Lincoln was elected President, the southern states seceded. They were heavily outnumbered in the Congress, and were forced to buy from the North. The strong navy enforced the heavy tariffs on foreign finished goods.

In 1861 Lincoln disregarded the southern states secession and sent ships into Charleston harbor to resupply the United States Fort Sumter. Just as Russian missiles in Cuba threatened the security of the United States 101 years later, the security of the Confederate States of America, CSA, was threatened by another country's fort in Charleston harbor. Just as President Kennedy eliminated Russia's threat, Confederate forces eliminated the United States' threat.

The South had major disadvantages in population, industrial power and in naval capability. It had no intention of going to war with the United States. Abraham Lincoln raised an army and invaded the CSA. The Confederacy fought bravely defending their nation and won most battles during the first 2 years. Even though the North eventually lost more than 100,000 more men than the South, this was a far smaller percentage of the number of available fighting men in the North than in the South. The last years of the war became a war of attrition. Sherman destroyed much of Georgia, and Grant constantly attacked the dwindling Confederate forces. Low on supplies and ammunition and heavily outnumbered, Lee surrendered. Lincoln would have shown mercy to the CSA. When he was assassinated, the southern states were brutally punished.

Northern historians have claimed that the war was fought over slavery. Although this was a culture that the agrarian south sought to preserve, the Emancipation Proclamation was not implemented until two years into the war. It only prohibited slavery in the CSA. Slavery was still legal in 5 states in the United States until the 13th Amendment was ratified in December 1865, after the war had ended.

Slavery is a terrible thing. Unfortunately there are tens of millions of slaves currently on our planet. There is little public outcry. The United Nations is mute or impotent to solve the problem.