1913: A Prequel to Feudalism
Give me control of a Nation's money supply, and I care not who makes its laws — M. A. Rothschild
Vision of Our Founders
Having fought the revolutionary war over taxes, our founders and early leaders understood the danger of a government who could tax its people indiscriminately. Prior to the income tax, the US Government was funded primarily by tariffs, and to a lesser extent by customs duties, federal excise taxes, and the occasional sale of public land. Overall, this was a consumption tax. The more you bought, the more tax you paid. Consequently, citizens could control their tax burden, and create savings for the future, by limiting their purchases. This was by design of the founders.
The power to tax is the power to destroy
Chief Justice John Marshall
It was for this reason that Clause 3 in Article 1, Section 2 of the U.S. Constitution was written. Also known as the tax apportionment clause, this clause prevented the U.S. Government from levying a tax based on peoples income. This is why the Supreme Court declared income tax unconstitutional in 1895. Subsequently, the 16th Amendment (income tax amendment) nullified this clause.
Sadly, the establishment of the Federal Reserve and income tax amendments did far more than nullify a portion of the Constitution. They gave the Federal Government, and our corrupt politicians by proxy, an unlimited budget to spend beyond their means at the expense of the working class.
Karl Marx Enter Stage Left
Ironically enough, the origins of the creation of the Federal Reserve Act and the income tax amendment are found verbatim in the Communist Manifesto. They are listed as follows under the ten despotic (tyrannical) measures to ensure a communist revolution in advanced countries.
2: A heavy and progressive or graduated income tax system
5: Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly
Theft of Our Republic
Regarding constitutional amendments: The first eleven amendments were passed between 1791 and 1795. Passing so many amendments at the time was needed to fine-tune the newly created Constitution. Only four amendments were passed throughout the 1800s. In the twentieth century, a whopping twelve amendments were passed. The first of which was the 16th Amendment (passed in February 1913), and the second of which (the 17th Amendment) was passed only two months later. Whereas the 16th Amendment (income tax) gave the federal government an unlimited checkbook, the 17th Amendment restructured our republic into a democracy (contrary to what you were taught, democracies are not good - see my blog The Tyranny of the Majority). By so doing, the Federal Government positioned itself to use the newly found wealth from income tax to buy voters and take control of states.
Why People Agreed to the Income Tax
The citizens of the United States had to be convinced that passing an income tax was in their best interests. This was accomplished by claiming that, by taxing the rich, the income tax would provide equity, justice, and fairness. This is a trick that is still in use today because it is the rich themselves who are telling you to punish the rich. As explained in part 1 of this series, the rich do not think in terms of fairness and equity. Overall, taxes do not apply to the rich because they have the means to create large trusts, foundations, and corporations to escape their tax burden (see Part I of this series). Therefore, it is easy for the rich to promote a tax against themselves when, in reality, the tax is against the middle class. Nearly all my life, I have said:
Whenever the government proposes to tax the rich, it is a dog whistle for taxing the middle class
According to modern economic theory, where the government can print whatever money they need, taxes are no longer necessary. In 1946, the Chairman of the Federal Reserve Bank, Beardsley Ruml, said as much in an article for American Affairs. He went on to state that taxes are not needed for revenue but to "express public policy in the distribution of wealth." This sounds like a good social justification for both the income tax and the Federal Reserve. However, history shows a different picture. According to the University of Delaware: The new income tax did little to level the playing field between the rich and the poor. And, according to the Tax Foundation: Since 1913, with exclusion of the Great Depression, the rich have continued to get richer, and the poor have continued to get poorer.
Taxes are not needed for revenue, but to "express public policy in the distribution of wealth."
A detailed analysis by the Economic Policy Institute shows that the rich got richer in the period following the passage of the income tax and just before the great depression. While many became super rich as a result of World War II, the overall gap in income inequality between the rich and the poor dropped during the era of prosperity that followed World War II. This changed in 1971, when Richard Nixon took the United States currency off the gold standard and enacted a fiat currency. Since, then the gap between the rich and the poor continues to grow at an accelerated pace. This trend of income inequality is mirrored by Thomas Piketty in his book, Capital in the Twenty First Century.
Since 1913, with exclusion of the Great Depression, the rich have continued to get richer and the poor have continued to get poorer.
So far, I have established that with the exception of guaranteeing our debt, taxes are no longer needed to support the government. Furthermore, taxes do not redistribute the wealth from the rich to the poor; which was the originally stated intention. Therefore, increased taxes are simply the government’s way to curb the prosperity of the working class in order to preserve the power of the elite. Look at it this way, if the working class as a whole prospered, then they could potentially have a financial sway that rivals that of the elite. Since swaying media and the political machine takes money (see my other blog post The Illusion of Freedom), the working class can finance an alternate narrative at a level that could nullify the narrative of the invisible government (a.k.a. the elite). Taxes are merely a way of keeping humans (the working class) from reaching the level of the Gods (the elite).
Where Do Our Taxes Really Go?
In 1982, President Ronald Reagan signed Executive Order 12369, which authorized the Private Sector Survey on Cost Control - also known as the Grace Commission. One of the commission's charges was to determine where every penny of tax revenue was spent. Surprisingly, the Commission found that one-third of all tax dollars were not collected, one-third were wasted, and the remaining third were absorbed by the interest on the Federal debt. Therefore, all Federal services, including the military, are solely supported with borrowed money (fiat currency created out of thin air) on which we owe interest to the Federal Reserve (see part II of this series for the details). The interest on this debt is paid by our taxes and the debt itself is guaranteed by taxes paid from the future labor of you and your offspring.
The Birth of the Feudal Nation
Prior to the income tax, the Federal Government was only interested in the business of tariffs, and it had no interest in the transactions of private citizens. Subsequent to the income tax, the Federal Government created its own form inquisitional police, known as the Internal Revenue Service. Since then, this precedent has flung our doors of our homes wide open for the Federal Government and their oligarchical partners to enter any time they wish. In so doing, the Federal Government has vanished both state lines and the lines between them and our personal privacy.
These days, the U.S. Government, along with their oligarchical partners in banking and media; increasingly abuse this power.
Ties up applications of dissenters with red tape.
Audits political enemies.
Known to blackmail non-compliant corporations bu threatening to leak their financial information to competitors.
There is an increased role for the government's partners in the banking system as well. For instance, in 2013, the Department of Justice put forth an initiative called Operation Choke Point, which partnered with banks to freeze politically disfavored businesses.
More recently, Justin Trudeau, the prime minister of Canada, partnered with the banks to freeze and confiscate the funds of private citizens who fell into political disfavor.
Media and Social Media
Systematically used by governments to manipulate political discourse, influence news reporting, silence dissent, and manipulate electoral outcomes.
The Elite’s Plan
The elite have a specific plan to usher in feudalism and have us accept it with open arms. In part two of this series, I delve into the details of this plan and why the elites have brazenly pushed up their timeline. Part two is available as exclusive content to members of the Be Strong and Happy website. Membership is free of charge and free of SPAM, so what are you waiting for? Join Now.
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