Commentary
Before 1913, individuals could keep all the income they earned without having to disclose it to the federal government. Financial matters were private, and there were no audits or withholdings. Revenue for the government came from tariffs, a relatively noninvasive method.
During that time, the federal government was much smaller compared to today, spending a fraction of what it does now. Donald Trump has highlighted the economic growth during this period, attributing it to tariffs.
The period focused on freedom and sound money, with the dollar tied to the gold standard and no central bank. The absence of government interference in daily life was significant.
In 1913, the income tax was introduced alongside tariffs, and the Federal Reserve was created, leading to a shift in revenue sources and centralization of power. Trump’s historical perspective aligns with the Hamiltonian approach of protective tariffs and national development.
Trump advocates for abolishing the income tax, a move that would require significant government spending cuts to compensate for lost revenue. Without substantial reductions in spending, reliance on tariffs alone may lead to inflation.
The idea of eliminating the income tax was eloquently argued by journalist Frank Chodorov in his book “The Income Tax: Root of All Evil,” highlighting the unlimited confiscatory power granted by the 16th Amendment to the Constitution.
The government has the power, as per the law, to seize everything a citizen earns, even to the point of leaving them with just enough for basic needs. This allows the government to take away everything above mere subsistence that a citizen needs to produce something that can be confiscated. Essentially, this gives the government a prior claim on all property produced by its citizens, violating the absolute right of property in the United States when the Sixteenth Amendment was added to the Constitution in 1913.
This amendment was presented as a tax reform but actually led to a revolution. It eroded the American concept of natural rights, reduced citizens to subjects without their awareness, increased Executive power at the expense of Congress, and enabled the central government to control once-independent states. The American Presidency now wields more power and controls more wealth than any kingship in history, turning the country into an oligarchy of bureaucrats.
Eliminating the income tax would restore property rights, enterprise rights, and privacy for American citizens, preventing arbitrary government intrusion and exploitation. The majority of Americans would support such a change, but no president has proposed it due to the enlightenment and awareness it would bring. It would reveal that the government thrives at the expense of the people, posing a threat to any political establishment.
The math dictates that without income taxes, no tariff could compensate for the loss. Drastic spending cuts are the only solution, including freezing budgets, hiring, and grants. The Trump administration may lead us in the right direction towards this goal.
Please note that the views expressed in this article are solely the author’s opinions and may not align with those of The Epoch Times.
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