This is a great explanation of the history of how the federal government funded itself throughout its history. It is a tale of excise taxes on whiskey (and other products) in the Carolina’s and elsewhere; of tariffs; and of using covetous, Marxist appeals to institute the income tax. Americans were led to believe only the wealthy would pay the income tax:
How The Federal Government Has Taxed Us
6 thoughts on “How The Federal Government Has Taxed Us”
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THE REGULATOR WAR IN NORTH CAOLINA 25 YEARS BEFORE THE WHISKY REBELLION WAS ACTUALLY THE FIRST SECESSONIST MOVEMENT FOR 4 YEARS. THE CAMEL GOT A TOE UNDER THE TENT WITH THE 16TH AMENDMENT. THEN LBJ’s GREAT SOCIETY DROVE A SPIKE INTO THE PEOPLE’S RIGHT TO KEEP THEIR MONEY AND PROPERTY. SAD BUT TRUE.
The way the country is run, Fred, became twisted from what the original design was. As you say, sad.
It wasn’t called the Whiskey Rebellion at the time. Historians like to call it that to belittle it. It was called the Western Insurrection. Washington only stayed with the army a couple of days to get it together and then handed it over to Hamilton, who arrested westerners almost at random with scant evidence.
Whiskey tax collectors were appointed for N. Carolina, but the Federal govt never received any money above what paid the tax collectors from NC. Hamilton explored getting Virginia militia to invade NC to collect, sweetheart that he was.
This is a pretty decent history. Except for his comment that the abusive tariff seemed fair. It was extremely unfair to the South and to western farmers and ranchers, greatly subsidizing manufacturing in the northeast.
“The Founders would not recognize the taxing system today.” Amen. The income tax, which makes every detail of your economic life the govt’s business, is the sine qua non of the US becoming an empire ruled by a cancerous organism. I don’t think it could have happened with a sales tax that was explicit and hit the entire voting population proportionately.
Part of the issue is that so many have a distorted concept of “fairness”, J. Sobran.
What is fair? Every person and or household paying the same absolute amount? Or paying the same percentage? Or is it most fair to take a greater percentage from some than others? Is it most fair to tax sales or income or property or other transactions? No matter what system is selected, there will be critics.
These strike at basic concepts such as morals and ethics. It is very easy for some to toss off their own responsibility on others. I agree with you that a sales tax is the best system, because it makes it less easy for large numbers to evade their responsibilities.
Paying tax on just what you spend (enjoy) encourages savings, which benefits society and makes everyone wealthier. Some proportionality to wealth or at least the extent one enjoys their wealth.
I agree, J. Sobran. The income tax and property taxes need to be eliminated. (We disagree on tariffs, but we have already discussed that previously.)