Tax Structure, Fairness and The Truth


Income taxes have a long history in this country dating back to 1862 when Congress enacted the first income tax in order to fund the Civil War.  The Office of the Commissioner of internal Revenue was established as part of that income tax legislation.  Prior to 1862 the government raised money by levying taxes on Sugar, tobacco, alcohol and of course tea.  But it wasn’t until 1913 with the ratification of the 16th amendment that the income tax became the permanent law of the land.  From that point on, Congress has been trying to improve and message the tax codes with varying degrees of success.  As the tax burden increased, people looked for new and innovative ways of circumventing the tax laws.  Remember, part of the reason for the establishment of this country was unfair taxes being levied by King George.  We Americans have a long history of hatred of taxes.  In 1986 President Reagan signed the Tax Reform Act essentially lowering the top tax bracket from 50% to 28%.  In order to make up for the loss of income, business taxes were increased and certain loopholes were eliminated.  In 2001  President Bush signed in to law Economic Growth and Tax Relief Reconciliation Act.  What this did essentially was decrease the tax rate to 10% on the lowest wage earners, doubled the child tax credit from $500 to $1,000 and lowered the top tax rate from 39.6% to 35%.  All of the other tax rates went down as well i.e. 28% became 25%.  So all Americans received a tax break.  Despite what liberals might say, this was very progressive legislation.  Everyone in the country, theoretically was still paying their fair share.  The less you earned the less you paid.  And it is absolutely fact that 47% of the people in this country pay no federal income tax at all.  That’s because they are owed more in federal aid than they would have to pay in tax.  So don’t be deceived about the fairness of the income tax structure as it stands today.  Now is it also true that men like Warren Buffet can pay the same tax as you and I? Yes, but not really.  In real dollars, of course he’s paying much more that the average American.  In percentage absolutely not.  But like anything in this world, there are people who will have advantages.  The more money you have the easier it is to build on that.  The taller you are, the easier it is to play pro basketball.  The prettier you are, the easier it is to become a fashion model.  Quite simply, life isn’t fair.  It’s not supposed to be.  We don’t all start on a level playing field.   I can only speak from my family’s experience, but the greatness of this country lies in the fact that a man like my father can start out not having shoes on his feet to graduating from medical school.  Don’t hate rich people for having money, work hard, strive and become one.  Despite what Michael Moore, and Bill Maher say, the American Dream in this country is still attainable.  It’s not more difficult now than it was years ago.  Does anyone really believe that the Irish, Italian and all the other immigrants who left there homes and family’s at the ages of fourteen and fifteen to seek out freedom and prosperity in this country had it easier?  Really?  Rich people not paying their fair share of taxes is not the root cause of the problems we now face in this country.  Don’t let anyone tell you it is.  All that allows people to do is rationalize why they are in a particular situation.  It allows for excuses.  If rich people paid higher taxes than they pay now, the unemployment rate would be no different.   There would simply be more money in the coffers for wasteful government spending.  Our tax dollars must be used in a more efficient, more intelligent manner before complaining about tax revenues.  Finally, this is the only country in the world not founded on the haves and have-nots, class warfare.  It’s founded on opportunity and freedom as idealistic as that may sound.  But the Framers really believed that.  We should not allow the liberals to turn it in to that battle.  Of the three fundamental principles only two are guaranteed; Life and Liberty.  The Pursuit of Happiness is up to the individual.

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