Wednesday, April 15, 2009

Celebrating our Serfdom on April 15th

Excerpts from Paul Craig Roberts' April 15th essay-- mostly, a history of the income tax-- for LewRockwell.com...

This April 15 is the 94th year that Americans have had to file an income tax. For most Americans, the day is a non-event. The federal and state governments have already collected the taxes due by withholding from each paycheck over the course of the calendar year. Most Americans never saw the money and have no real idea that they earned it.

Some Americans have their incomes over-withheld as a form of forced savings. They look forward to tax time as it means they will receive a refund check from the government that they can use for a summer vacation, a big screen TV, a new appliance, or a down payment on a new car.

Few Americans realize that over the last 94 years they have been enserfed and have no more rights to their own labor than medieval serfs...

The 16th Amendment to the Constitution was ratified because the income tax was only for the rich. Some states ratified the amendment because no one in the state had an income high enough to be subject to the tax.

According to the US Department of the Treasury’s history of the income tax, less than one percent of the US population was subject to the income tax. A progressive structure was applied to this less than one percent of rich Americans, with rates ranging from 1 percent to 7 percent on incomes over $500,000, a great sum of money in those days.

In the first year of the income tax, the world’s richest person, John D. Rockefeller, paid $2 million in income tax, almost 3 percent of the total income tax collected.

People were happy. They had finally gotten the rich.

And themselves as well. Exemptions were reduced and tax rates were raised in rapid succession in 1916, 1917, and 1918. Within five years the tax rates ranged from 6 percent to 77 percent...

In "free" America today, despite the Kennedy, Reagan, and Bush tax rate reductions, ordinary Americans have no more claim to their own labor than a medieval serf. Most are content, however, with handing over 30 percent of their income as long as they can hope to tax the rich at 50 percent, the tax rate on 19th-century slaves.

Some 19th-century slaves, whose skills were worth more in towns than on plantations, were leased by their owners to businesses in towns. The businesses would remit half of the slave’s wages to the owner. Out of the remainder, slaves could save enough to purchase their freedom.

Today, we cannot purchase our freedom from the IRS. The only free Americans today are those who can work off the books or who can live on public welfare.

People who reject my analogy can test the analogy by refusing the government’s claim on their labor. They will find that the IRS can be just as ruthless as the worst feudal lord or slave owner....

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