Start hiding your kid's piggy banks, because that's what they're headed for next. A nickle here and a dime there. Eventually we won't have enough to pay the light bill. But aren't we already living in the dark? What are our tax dollars really used for?
In the wake of the American Revolution, which had sparked from an unfair taxation system and lack of representation in Parliament, most citizens of the new America were fairly wary of any type of taxation outside that of the general taxes they had been paying to support the Colonies. These taxes consisted mainly of import-export tax and real estate taxes.
A strong centralized or federal government was met with strong resistance early on in our history and for a few years the majority of the government powers stayed within the states, the federal government was just there to oversee. It wasn't until 1789 that the founding fathers came to the harsh realization that no country could run on the resources of other countries forever. This is when the tax system of today began, all be it, much more conservative and much more out of necessity than the ridiculousness we observe theses days.
Up until the great depression, most of our tax increases were due to the funding wars and shortly after those wars ended the taxes would go back to prewar tax rates. Not to say there were no other tax increases or new taxes created in the system, but they were not what you would see today. Most taxes until the late 1800's were excise taxes, which is a tax on goods or services, also known as a sin tax because it was usually applied, but not limited, to alcohol, cigarettes, and even playing cards.
In 1861 the federal income tax was created to fund the civil war and was abolished in 1872 when the war ended. Under the Constitution, Congress could impose direct taxes only if they were applied in proportion to each State's population. So when a flat rate Federal income tax was enacted in 1894, it was quickly challenged and in 1895 the U.S. Supreme Court ruled it unconstitutional because it was a direct tax not apportioned according to the population of each state. As a result of trying to pay for the Spanish-American war with the absence of Income tax revenue, the government started applying even higher tariffs as part of the War Revenue Act. They doubled the taxes on beer and cigarettes, taxes recreational facilities used by workers and even started to tax gum.
Eventually, the people became increasingly aware of how high these tariffs were getting and most of the tax burden settled disproportionately in the lower income brackets. The income tax debate was still alive even after the 1895 ruling and everyone new a hard fought change needed to happen. After much debate, in October of 1913, an amendment to the Constitution was made to allow a Federal income tax. Prior to the enactment of the income tax, most citizens were able to pursue their private economic affairs without the direct knowledge of the government. Individuals earned their wages, businesses earned their profits, and wealth was accumulated and dispensed with little or no interaction with government entities. The income tax fundamentally changed this relationship, giving the government the right and the need to know about all manner of an individual or business' economic life.
1929 marks the year of the Stock Market crash which, is where I see, everything starts to downward spiral from. Two back to back world wars didn't help either. There were two large tax increases, one in 1932 and one in 1936. While putting the government back in the black, it weakened the already struggling economy of the time. The decisions made during this time are still effecting our economy and our tax system. Taxes have pretty steadily gone up from these years on.
So now that we have a brief reference of our tax history, lets get down to what we really know about the places our money goes.
We know that a good portion of our taxes go to support our social security system. We know that we pay for defense of the country, social services, education, road building and maintenance. Hopefully we all know that we also have outstanding debts to other countries, mainly China and Japan. And now we will be paying a good portion for the "Stimulus" plan and the new Health Care plan.
OK, pretty general stuff. I think most of us are OK with paying out for good portion of this with the exception of maybe the last bit. In general, it seems that these are things the country needs. Why wouldn't we want to pay for Social Security....we will need this come retirement time. Of Course we need to defend the country and educate our children. Can't go anywhere without a good road system. Oh, and the poor people who can't help themselves, don't forget about them. All good causes, right?
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."‚-Thomas Jefferson
"To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical."- Thomas Jefferson
Taking from the "rich" and giving to the poor is Robin Hood's job.
Above is a link that shows the wasteful and fraudulent spending that goes on at the taxpayer's (that's you) expense. That's just the tip of the iceberg. We spend billions on social services for illegal immigrants and supporting every other nation's strife but our own. How can we send x amount of dollars to Haiti when we are more than flat broke? The government needs to stop stroking it's ego like the fat cat in the room and get back to what they are there for. STOP SAVING THE WORLD AND SAVE AMERICA!!!
The link above is an interesting tell we should all read.
We are a nation of spenders. Most families are in debt more than 50% of there annual salary and the government encourages it because that's what keeps our economy afloat right now. It's a viscous cycle that will not end good.
"There is no such thing as government money - only taxpayer money." William Weld, quoted in Readers Digest.
This is our debt. As a nation, we have created it, not only by voting in the very people who are making the decisions to use our money in ways we probably wouldn't agree with if we were paying attention, to demanding the government "save us" every time something bad happens. We used to be a strong nation, hardworking and proud. Now the hard workers that are left are paying to support the frivolity of our politicians and the citizens and non-citizens who would be happy to sit and collect what they can. When the US goes down in flames, we will only have ourselves to blame. Eyes wide open people, or we're all goners.