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Sunday, July 20, 2025

The Inevitable

 

  “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”


That profound sentence was written by Founding Father Benjamin Franklin, in a letter to Jean-Baptiste Le Roy, in 1789.


Eventually becoming a popular idiom, those words are now commonly used to point at anything that is both annoying and inevitable.


So, I was curious as to how we arrived at our present location in life regarding taxes and their punitive affects on our daily lives. Buckle-up and prepare for a wild ride through the true history of taxes, taxers, and taxees.



(Psst: Save yourself some time and trouble of looking up the word “taxees,” as I just made it up to improve that sentence.)

Real estate speculator, King George III


The federal income tax in the United States was officially established with the ratification of the 16th Amendment on February 3, 1913. Its origins trace back to the Civil War when the first income tax was introduced in 1862 to help finance war expenses.


It should be noted that early taxation relied heavily on tariffs and excise taxes. Odd that this means of finding money worked well until Congress felt they were the smartest people in the country. By the way, what worked so well until then – tariffs – are suddenly vilified since it’s now President Donald Trump’s idea. Oh, my.


However, the income tax was repealed in 1872 due to public opposition. Go figure.


Not to be denied their exercise of power, Congress, in 1894, attempted to reintroduce a 2% income tax on incomes over $4,000, but the Supreme Court ruled it unconstitutional. Not to be deterred, Congress flexed its muscle by proposing the 16th Amendment in 1909; it was ratified in 1913.


The first federal income tax under this amendment was a 1% tax on incomes above $3,000, with a 6% surtax on incomes over $500,000. Clearly this paved the way for the annual pickpocketing known as the “Congress Can Spend Your Money More Wisely Than You” Amendment. (Not really, but it should have been named that for accuracy.)


This brilliant maneuver fundamentally changed federal revenue sources, making income tax a primary means of funding guvment operations. With sleazy Congressmen AND women in charge, over time, income tax brackets have evolved significantly impacting American economic policy and society.


Not unlike sharks, Congress suddenly developed a taste for blood, beginning a campaign to see how quickly they could bleed Americans, along with their work ethic. With a seemingly endless supply of dollars from the then-estimated population of 92,000,000 Americans, Congress’ crusade on class warfare began in earnest. Let the exsanguination begin!


But what exactly is the aforementioned excise tax? I’m here to explain.


An excise tax is a specific tax imposed on certain goods or services at the time of purchase, such as fuel, tobacco, and alcohol. It is typically paid by businesses, but passed on to consumers through higher prices. This excise tax is local in nature, collected by municipalities and states, very much like sales taxes are.


To help the federal guvment feel more included, the feds began adding their “fair share” of taxes on goods such as vehicle tires. Tires are subject to various taxes, including federal excise tax (FET) and state-specific fees such as the Tire User Fee in Illinois, which is imposed on the sale of new and used tires. These taxes help fund road maintenance and tire disposal programs. Wink, wink.


Unfortunately, Americans are sold a bill of goods each time the excise fuel prices are raised, lying to us about the need for mo’ money to repair roads and bridges. Uh, huh.


It seems as though the FET, sales tax, and Tire User Fee, is in addition to the ever-present federal income tax. Not a bad legal haul for a politician-generated robbery, but most certainly a crime for Al Capone.


Let’s skip ahead to the calendar. The federal guvment’s budget is on a one-year cycle. Beginning on October 1st, and ending on September 30th, this period is known as a “fiscal year.” Fiscal years are determined to set budget deadlines as well as spending periods.


These budget plans are set by Congress who hold the proverbial checkbook and pen. ONLY Congress may spend money from the Department of Treasury; not the President, Vice President, Speaker of the House, or janitor, can authorize spending money. Period.


If – IF – the federal guvment runs out of money, they cannot spend more because the pre-established limit has already been spent, and the checkbook balance is $0.00. In American dollars, that is ZERO.


Oftentimes, the guvment runs out of money, though. Natural disasters, civil unrest, over-exaggerations of the flu, foreign wars, and other unforeseen emergencies quickly deplete the coffers, at which time it is necessary to still spend money in the name of humanity and public safety. That’s when Congress meets to raise the budget in the form of a loan – a loan that needs to be repaid – hence, the name “loan.”


Currently, the loan as of late stands at a nosebleed $37,000,000,000,000. That’s 37 trillion dollars!

Click here for the actual Debt Clock   https://www.usdebtclock.org/


No matter who you are, that is a lot of money, but the brain trust in Congress think there’s room to write more bad checks for frivolous things. And they are quick to tell you that if only they had more money, all would be well. It wouldn’t, because they’ll only spend more. Trust me.


Now for the big question: Where will Congress get the money?  Answer: You.

And the little question to which you also know the answer: How will Congress extort your money? Little answer: Taxes.


Don’t forget that America became a nation because Britain’s King George III raised the excise tax on tea. Don’t forget.