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When the 16th Amendment was created it only applied to the very rich people.
The new income tax started out as 1 percent tax which only applied to rich people
who made $3,000 or more a year in 1913 which was about $60,000 in 2013 dollars.
The first income tax maxed out at 6 percent for people making a half million or more. (for a copy of the 2 page 1913 income tax form see http://www.irs.gov/pub/irs-utl/1913.pdf) Congress even debated capping the Federal income tax at 10 percent, because they thought if the tax ever got that high it would be outrageous. And on top of that back in 1913 America was an agrarian society and most people didn't work at jobs where they received a pay check like they do today, but instead worked on the family farm. And because they made very little money they didn't pay income tax. In this letter to the editor Milton Cormier wants to shake every American down for a 23 percent tax which seems to be a VAT or value added tax. Last but not least the term "Fair Tax" is a oxymoron. There is no such thing as a "fair tax" any more then there is a "fair rape" or a "fair robbery". Taxes are stealing and stealing is wrong. Just because two crooks who wear three piece suits and call themselves Congressmen vote to steal your money doesn't make it right. Letter: Fair Tax — not Flat Tax — is the way to go Posted: Wednesday, May 29, 2013 2:53 pm Letter to the Editor Tax reform has become an important issue in dealing with the recession and job creation. There is a plan now in committee in the House of Representatives referred to as HR 25 and is fair to all Americans. It is the Fair Tax (not the Flat Tax) and is supported by the best economists in our nation. The Fair Tax is a consumption tax of 23 percent on new goods and services and would eliminate the IRS and all taxes associated with that agency such as the income tax, payroll tax, capital gains tax, the alternative minimum tax, corporate tax, estate and gift taxes. The imbedded tax of 22 percent on all new goods would also be eliminated. American workers would receive their full paycheck. The Fair Tax would bring millions of high paying manufacturing jobs back to America, boosting the economy, and improving the standard of living for the poor and middle class and eliminate tax breaks for the wealthy. The poor would pay 0% tax through a rebate program. The Fair Tax is also revenue neutral. The Fair Tax would make our laws fairer, simpler, and more transparent. It would unleash American’s economic potential by abolishing the corporate tax and allow the American people to focus on saving and investing. Passage of the Fair Tax would also protect Social Security and Medicare for current and future retirees. Milton Cormier Sun Lakes |