Taxes Part I: How Income Tax Began

Part I: How Income Tax Began

When the Constitution was written and ratified, the only taxes allowed by America’s founding document were to pay the debt and provide for the common defense and general welfare. “Welfare” meant the general well-being of the people, not government handouts to people who didn’t work for a living.

During the War of 1812, Congress imposed America’s first sales tax. But even then, just on gold, silverware and jewelry. Amazingly, in 1817, several years after the war of 1812 had been won, Congress ended all internal taxation on Americans, including sales tax, relying solely on tariffs on imported goods to fund the government.

It wasn’t until the Civil War of 1862, in order to pay for the increasingly high cost of the war that the United States Congress adopted America’s first income tax — three percent for wage earners between $600 and $10,000, and higher for those making over $10,000. Sales and excise taxes were imposed, as well as the nation’s first inheritance tax. The Commissioner of the Internal Revenue Office was created and granted the power to levy and collect taxes, a power the Constitution had given solely to the United States Congress. In 1872, with the Civil War long over, Congress eliminated the income tax.

Then came the era of progressivism.

After progressive Democrat Woodrow Wilson was elected president in 1912, the Sixteenth Amendment to the Constitution made the income tax permanent in 1913. The amendment gave Congress the legal authority to tax income — of both individuals and corporations. Advocates promised the highest tax rate would never climb above seven percent, but just two years later, it was already at 15 percent.

With the onslaught of World War I, the federal government made the case that tax rates must be raised to finance the war effort. In 1916, the top rate leapt from 15 to 67 percent, and the next year to 77 percent. Two constitutional presidents — Warren Harding and Calvin Coolidge — fought and succeeded in cutting spending by 50 percent and lowering income tax rates. By 1925, the tax rate had been slashed from 77 percent to 25 percent.

Throughout our nation’s history, the wealthy have been punished with egregious taxes, but nothing could compare to the unbelievable burden placed on the most successful Americans in 1944, when the federal government raised the top tax rate to 94 percent of every dollar earned over $200,000. It’s difficult to believe that any American would find it right and moral for a government to confiscate all but six to 10 percent of a person’s income.

The highest rate fell from 70 to 50 percent in 1981 and then to 28 percent in 1986.

It should be noticed that the second plank of the Communist Manifesto, right after the abolition of all private property, is a progressive or graduated income tax. The United States of America has adhered to that communist plank since 1913. The nation that first instituted communism — Russia — abandoned the progressive or graduated income tax in 1998 for a flat tax of 13 percent, growing the country’s revenue by 28 percent.

Apparel company The North Face recently stated that it would no longer make jackets for oil and gas companies because it doesn't want to be associated with the fossil fuel industry. In response, Colorado-based oil and gas company Liberty Oilfield Services rented full billboard ads to remind The North Face of the truth: "Globally, 60% of all clothing fibers are made out of oil and gas. For North Face, it is likely 90% or more."

Liberty CEO Chris Wright joined Glenn Beck on the radio program Tuesday to discuss just how much of our economy — beyond outdoor apparel and energy — wouldn't exist in a world without fossil fuels. And he warns that many companies are now deeming this truth to be "controversial."

"I have been for years, trying to get a real, honest dialogue about energy going," Chris told Glenn. "So we took this opportunity to point out that North Face jackets are ... almost completely made out of oil and gas. How can you choose not to associate with the essential material your equipment [is] made out of? So we put a billboard up ... the billboard says, 'That North Face puffer looks good on you. And it was made from fossil fuels.'"

"Most billboard companies did not want to run that billboard. They thought it was controversial," he added. "And Facebook put a hold on our brief video just saying the jacket looks good, this is what it's made out of. In today's world, that is controversial."

Watch the video below to catch more of the conversation:

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During a lecture at the Yale School of Medicine's Child Study Center, a New York City-based psychiatrist told students and faculty that she fantasizes about "unloading a revolver into the head of any white person that got in my way," among several other shockingly race-hating statements.

In April, Dr. Aruna Khilanani — a New York-based forensic psychiatrist and psychoanalyst — delivered the talk called "The Psychopathic Problem of the White Mind" virtually as part of the Yale School of Medicine's "Child Study Center Grand Rounds," a lecture program for "trainees in child psychiatry, psychology, and social work, faculty, clinicians, and scientists."

On the radio program Monday, Glenn Beck shared several quotes from an audio recording of the lecture provided by Bari Weiss, a former opinion writer and editor for the New York Times.

Here are a few of Khilanani's statements from the audio:

  • "This is the cost of talking to white people at all. The cost of your own life, as they suck you dry. There are no good apples out there. White people make my blood boil."
  • "I had fantasies of unloading a revolver into the head of any white person that got in my way, burying their body, and wiping my bloody hands as I walked away relatively guiltless with a bounce in my step. Like I did the world a f***ing favor."
  • "White people are out of their minds. And they have been for a long time."
  • "White people feel that we are bullying them when we bring up race. They feel that we should be thanking them for all that they have done for us. They are confused, and so are we. We keep forgetting that directly talking about race is a waste of our breath."
  • "We are asking a demented, violent predator who thinks that they are a saint or a superhero, to accept responsibility. It ain't gonna happen. They have five holes in their brain. It's like banging your head against a brick wall. It's just like sort of not a good idea."

"We must take a stand. We must speak out, because this is evil," Glenn said in response to Khilanani's shocking lecture. "I don't care who you voted for, you know this is evil."

Watch the video below for more details:

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The prices of our houses and food are already rising fast, but they will skyrocket to record highs if we don't fix the problem soon. So what's causing the inflation?

On the radio program this week, Glenn Beck said he doesn't believe it's the fault of our loggers, farmers, or truckers — many of them are really struggling. But the big corporations that control these industries are making record profits, all while the Biden administration is making some very odd decisions that could make the crises even worse.

Watch the video below for more details:

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The crisis at the border continues to worsen, with the U.S. Border Patrol recently releasing some shocking statistics that illuminate just how bad the situation has become. But Texas Governor Greg Abbott (R) is doing everything he can to prevent any additional unlawful crossings into the Lone Star State.

Abbott joined Glenn Beck on the radio program Wednesday to describe recent action he has taken to ensure that those who do cross into Texas illegally know they came to the "wrong state."

After noting that both President Joe Biden and Vice President Kamala Harris "have completely abandoned post as it concerns the Texas border," Abbott explained how "Texas is stepping up" to combat the flood of dangerous gangs and cartels, human traffickers and drugs he says are pouring into border communities.

"Beginning in March, I deployed a thousand Texas Department of Public Safety officers to the border. I deployed the National Guard to the border. And they made well over a thousand arrests of some of these criminals we talked about. They've apprehended more than 33,000 illegal immigrants coming across the border." Abbott said. "But because of the way the Biden administration has abandoned the border, we are now elevating our game. What I did yesterday, in response to more than a dozen counties along the border ... I granted their request for a disaster declaration," he added.

Abbott went on to describe how his disaster declaration gives Texas the authority to toughen penalties for lawbreakers, including criminal trespassing, smuggling, and human trafficking.

"We're going to begin arresting everybody coming across the border and charging them with criminal trespass and putting them in jail. They are coming in here, thinking they'll get the Biden free-ride, and go wherever they want to go. Not in the state of Texas. We'll start arresting them right and left, and putting them behind bars, and saying they came in to the wrong state."

Asked by Glenn if he is prepared for the inevitable "media onslaught", Abbott simply answered, "We're prepared to see a reduction in the number of people coming across the border — because Texas is enforcing the law, period."

Watch the video clip below for more:


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