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Lesson 13 - The Rise of Progressive Economics
Lesson 13.1 - Amendment XVI, Income Tax and the Federal Reserve
The income tax was never supposed to come into existence. The Founding Fathers prohibited direct taxes in Article I, Section 9, Clause 4 of the U.S. Constitution, and the proposed amendment was never expected to be ratified by the States. . .
Progressivism was on the rise in the United States around the turn of the 20th Century. Americans were concerned about the large national debt that remained with the United States as a result of the Spanish-American War, and the growing social inequality between the rich and the poor. The idea that there should be a tax that “soaks the rich” began to take root among progressives of both major parties. The Democrats took to progressivism more than the Republican Party, and the liberals of the Democrat Party were looking for a way to embarrass the conservative arm of the GOP so that they could gain some traction in the next election. . .
During World War II Franklin Delano Roosevelt saw the income tax as a way to vastly increase revenue, and initiated a policy of withholding from “all” wages and salaries, not just the highest incomes enjoyed by the rich. Rather than the rich paying the tax at the end of the year, the tax was collected at the payroll window before it was even due to be paid by the taxpayer. This style of collection shifted the tax from its original design as a tax on the wealthy to a tax on the masses, mostly on the middle class. . .
In addition to violating the original intent of Article I, Section 9, the income tax also opposes the 4th Amendment which requires that a citizen’s privacy be protected. An income tax enforced by the Internal Revenue Service violates the privacy of the home, business, personal papers and personal affairs of the private citizen. Since the tax is based on income, the IRS has the task of making sure everyone pays his fair share. This task is physically impossible without prying into the private papers, private business and personal affairs of the individual citizens. . .
The Federal Reserve Act surrendered control of the monetary system to the international banking cartel and guaranteed the eventual abandonment of the gold standard. The Federal Reserve's debt-based money guaranteed the enslavement of every American under a crushing debt burden. The Federal Reserve guaranteed the ability of the international banking cartel to confiscate wealth through artificially created boom/bust cycles. . .
The welfare system was created to compensate for the damage caused by the Federal Reserve and the income tax. . .
The income tax is in line with the Marxist philosophy of destroying a capitalist society by steeply graduating taxes on income and heavy levies upon the estates of people when they die. . .
Lesson 13.2 - Amendment XVII, Abolishing State Representation in the United States Congress
. . . The dynamics of the federal government were set up to prevent any part of government from having access to too much power. Too much power in any one part of the system could be dangerous, and this included too much power in the hands of the people. . .
This nation is not a democracy. All of the voting power was not given to the people. Even the voting power was divided so as to ensure the republic was protected from the mob-rule mentality of democracy. . .
The Senators were appointed by the State legislatures. The State legislators are voted into office by the people of the State. Therefore, during the early years of this nation, the Senators attained office by an indirect vote of the people. . .
Remember, the federal government exists because the States let it. The powers derived by the federal government were granted to it by the States. The federal government is not supposed to be able to do much of anything without the State’s permission. The Senate was the representation of the States so that the States could ensure the federal government remained within its authorities. . .
The people wanted the government to be more like a democracy, and they got it with the Seventeenth Amendment. . .
Karl Marx once stated that “Democracy is the road to socialism.” . . .
The Seventeenth Amendment, combined with the creation of the Federal Reserve, and the implementation of an income tax, was all a part of a scheme to change the American System into a model of socialism through the guise of democracy. . .
We are not a democracy, and we were never meant to be a democracy. The Seventeenth Amendment moved us in that direction. The Founding Fathers continuously spoke out against the dangers of democracy. They knew that democracies lead to mob-rule. As much as the government couldn’t be trusted with too much power, neither could the voting public. . .
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