The Income Tax and Federal Reserve Act

The Income Tax

I read a great article a few days back detailing how the Federal Government managed to operate without ever having to collect an Income Tax from Americans.

Here's a snippet on how efficient the Federal Government was before the Democrats began modifying it to start planting the seeds for communism.

Congress could afford to run the federal government on tariffs alone because federal responsibilities did not include welfare programs, agricultural subsidies, or social insurance programs like Social Security or Medicare.

Prior to Woodrow Wilson and the Democrats, the Income Tax was used temporarily by Republican President Abraham Lincoln under the Revenue Act of 1861 as a means to pay off the debt for the Civil War.

It would be repealed 10 years later, but in 1894, the Income Tax reared it's ugly head in the form of the Wilson-Gorman Tariff Act, which enjoyed strong support by the Democrat-controlled House and Senate and signed into law by President Grover Cleveland (D).

Eventually, the Supreme Court had ruled it unconstitutional in 1895, and the Income Tax was struck down. It wasn't until 1913, when Woodrow Wilson and the progressive Democratic Congress were in complete control, that they were able to modify the Constitution to add the 16th Amendment.

In 1894 Congress enacted a flat rate Federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state. The 16th amendment, ratified in 1913, removed this objection by allowing the Federal government to tax the income of individuals without regard to the population of each State.

The Federal Reserve

Now let's turn our attention over to the Federal Reserve, another landmark bill of the progressive Democratic party and Woodrow Wilson. Let me preface by saying that I don't associate the Federal Reserve with Communism in any form. But this bill has had a profound effect on the value of the dollar as well as the US citizen and was passed under Woodrow Wilson and Democrats.

In just 100 years under the Federal Reserve, the dollar has shed nearly 96% of its value. Do the math yourself if you want to double check. This is a hidden tax on the people and the majority of Americans don't realize it. Also, because the people most likely to be affected by taxes are the middle-to-lower income brackets due to the higher cost of living, it begins breeding resentment against the upper class who can afford to live comfortably despite paying higher taxes. As most of you know, resentment towards the rich and class warfare are a staple of Commies. They thrive on this and grow their movement through resentment..

Now, people will argue that the Federal Reserve Act was put in place to help stop financial panics, like the Panic of 1907. But it seems that now the United States had overcome the panic, it is time to transition out of the Federal Reserve Act and give power back to Congress to be able to issue the country's currency. The dollar cannot continue to shed value and expect to remain the world's reserve currency. If the dollar collapses, we will not be able to pay off our debt and will like be forced to turn to a global currency, as communist China has been advocating for, that would not be under our terms.

The point of this blog post is this: when Americans engage in discussions about how to improve the quality of living, the main focus seems to be on how to increase our wages or create more government assistance programs, rather than find out what exactly makes the cost of living so high. You will rarely hear anything about repealing the Income Tax or the Federal Reserve Act, which would do a lot more to improve our standard of living than any government handout ever could.

The communist on the left will not point their loyal supporters to the real issues likely to affect them, especially if it means bringing awareness to the people who helped pass the Federal Reserve Act and 16th Amendment: President Woodrow Wilson (D) and a progressive Democratic Congress that held a majority in both the Senate and the House. Their loyal supporters would not question either piece of legislature, but the undecided voter must be convinced that all of this is working in their best interested. Getting their supporters to not focus on the real issues is a tactic used by the left that I will continue to expose as I go through this blog.