A Hole in the Dike
Remember that story when you look at the national debt. That debt is a huge bill, much of which is owed to China, with payment due on demand.
Next, consider this paragraph from this column earlier this year on February 8:
“There is no way that debt can be eliminated with taxes, even if every American adult was a taxpayer. So, if that bill is to be paid, the only way will be for the government to take ownership of all the capital assets in the country,”
Currently, most capital assets or estates are protected by a dike. The only ones subject to a direct tax are estates of $11.70 million or more. Assets over that amount are subject to the “death” or inheritance tax.
Unfortunately, a hole in the dike protecting private enterprise in the United States has already appeared. On March 1, socialist Senator Elizabeth Warren introduced The Ultra-Millionaire Tax Act in the Senate.
If this bill becomes law, it will tax the net worth of America's richest people by applying a tax of 2% on those with a net worth more than $50 million and a 3% tax on those worth $1 billion. Net worth includes value of stocks, real estate, cars and anything else a person owns, minus their debts.
“So what, that’ll not affect me.” That is what 99+% of American are thinking. “There are just a few Americans in that category. It will not affect me, and those subject to the tax can afford it.”
Those with that attitude should step back to 1913. That is the year the 16th Amendment of the Constitution was ratified.
That Amendment provides: “The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
In October of that year, Congress enacted the Revenue Act of 1913, levying a 1% tax on net personal incomes above $3,000, with a 6% surtax on incomes above $500,000.
News of this fly in the ointment did not raise eyebrows because homes were not bombarded with newspapers, radios, and TV. Most of those who were aware of this new tax were not concerned because it applied to so few. Those who thought about it may have been pleased, because those filthy rich were being required to share their wealth.
The tax rate and the income subject to the tax fluctuated widely in following years. In 1932 the top marginal tax rate was increased to 63% during the Great Depression and steadily increased, reaching 94% in 1944.
Then, during World War II, Congress introduced payroll withholding and quarterly tax payments. So now every working American with an income of $500.00 a quarter is subject to having income tax from the wages.
Today every wage earner and money maker in the county is subject to that tax that was dreamed up just to have the super rich pay their fair share.
Apply that history to Warren and the socciaslist/Democrats’ The Ultra-Millionaire Tax.
Today that bill is aimed at the super rich, just like the original income tax. What, however, will it look like to our grandchildren and their children?
Estates include real estate. So in the last half of this century, those small farms and ranches right here in Washington County may be subject to a federal property tax in addition to the state and local taxes.
So here’s the perspective.
There is a hole in the dike protecting what is left of our privately owned property. The tax and spend socialist/Democrats are not interested in plugging the hole. It is up to conservatives to stop the flood.
Remember that little Dutch boy with his finger in the hole in the dike every time you enter a voting booth.
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