INCOME TAX: WHY WE HAVE IT
Tote that barge, lift that bale, and make sure you pay on time.
Our guess is that only a relative handful of Americans knows why
we have the income tax. With rare exceptions, they
will exclaim that we must have the income tax to "pay the expenses of
the government." Of course the truth is exactly the opposite. The income
tax has nothing to do with paying the expenses of the government. Cuz
every cent of it goes to the FEDERAL RESERVE, world bankers. If you
don't think so, look at the back of your cancelled tax check!. They endorse it!
First an obvious fact, something you already know. When was the country
created? Pick a date. Many would pick July 4th, 1776, when the
Continental Congress adopted the nation's birth certificate, the
Declaration of Independence. Many others would pick the date of
ratification of the Constitution. Let's arbitrarily use 1776.
Now, when did we get the income tax? Except for the temporary income tax
during Lincoln's Communist War to Destroy the Union, there was no income
tax in this country until 1913, when the U.S. Supreme Court upheld its
validity in Brushaber, 240 U.S. . Indeed, even then it did not affect
more than a handful of our people.
As late as 1942, only 3% of our people paid income tax. Until that date,
most people probably had heard of it, but they didn't pay it and had
never seen the form. It didn't apply to them. Indeed, if you check the
records, you will see that in 1941, when the reader may have already
been alive, the federal government collected more in alcohol and tobacco
taxes than it did in income tax. Remember "moonshine" and the
The income tax finally did hit the people in a big way only in 1942, and
then only because we were of course in the middle of the war Franklin
Roosevelt had finally succeeded in tricking us into by arranging Pearl
Harbor. Even so, the conspiratorial warmongers could put the tax over
only by calling it the "Victory" tax, a "temporary" tax collected by
withholding, which would be repealed as soon as we had won the war.
Question: Name for me a year, just one year, between 1776 and 1942, when
the nation couldn't function because we had no income tax. Can't find
one? Okay name a month, just one month, when the nation collapsed,
couldn't pay its bills, because we had no income tax. How about a week?
Indeed, remember that during all that time, we fought many wars. We won
them all. Yes, we won World War II with the income tax because it was
"temporary," not yet a permanent part of our lives, but mainly because
we fought that war on behalf of Stalin. With the income tax we have not
outright won a war since, from Korea to Iraq.
Remember, you knew all this. I am simply reminding you of something you
already knew. So, if we didn't have an income tax, yet never collapsed,
where did the federal government get the funds to pay for itself? Again,
they came from alcohol and tobacco taxes.
They also came from tariffs, which made foreigners pay for the privilege
of selling products here. And they came from other indirect taxes. These
were enough to pay for the few powers the Constitution grants to the
federal government. Did you know that one of the biggest problems in
Congress before the turn of the Twentieth Century was what the
newspapers called the "tariff monster?" So much tax money was pouring
into the Treasury that Congress didn't know what to do with it.
So, if we don't need an income tax to pay for the federal government,
why do we have one? In August, 1942, Meyer Jacobstein, of the Brookings
Institution, testified to a Senate subcommittee that "it is necessary to
mop up the excess purchasing power of the community . . . because of its
effect on the price situation . . . ." There are also a couple of Ohio
University economists, Richard Vedder and Lowell Gallaway, whose study
showed that for every dollar of increased taxes, Congress increased
spending $1.58. In other words, taxes cause spending.
Now, another question you know the answer to. When there was money (gold
and silver) behind our currency, the government had to deposit in the
treasury the appropriate amount of money, in grains or ounces, whenever
it printed paper currency. In the same way, you must deposit the
appropriate sum in your checking account before you write a check
U.S. currency used to say it was "redeemable" downtown at the bank. The
bank would pay the amount of money printed on the face of the bill to
the "bearer on demand." Even early Federal Reserve Notes said that. The
only difference between your personal check and government currency is
that your check names the person to be paid and the government currency
does not. It paid the "bearer," whoever had it in his hand when he
walked into the bank.
Now here comes the question. Since there no longer is any money behind
our currency; since the government no longer need find and deposit rare
gold or silver into its account in order to write a check against it;
and since paper and ink are relatively limitless in supply - indeed,
computer entries, today's "money," are utterly limitless - why does the
government bother to tax at all? Why the audits, the penalties, the
raids and seizures, the divorces and suicides?
Why doesn't the government just print what it needs; bigger numbers on
bigger pieces of paper? Even easier, why not just boot up and click on
ever bigger computer entries; then use those computer entries to pay the
bills? This is what Meyer Jacobstein was talking about. The answer is
that doing so would constitute hyperinflation, which would send prices
to Alpha Centauri and destroy the dollar here.
That is what happened in the Weimar Republic in post-World War I
Germany, where the process took two years. It is happening now in
Zimbabwe. The reason it has taken so long to happen here is that the
financial geniuses who run the conspiracy for world government run the
unbacked printings and now the computer entries through the non-Federal
non-Reserve System, which is brilliantly designed to confuse and conceal
what is happening. Extra layers of obfuscation have since been added,
including the CDO and other alphabetical horrors. I have explained the
process many times; no need to do so again here. But it is happening and
when the train stops we shall be in Weimar.
The man with the answers is Beardsley Ruml. Ruml was a lifelong
Rockefeller factotum. Rockefeller is the family David Rockefeller boasts
in his Memoirs is part of a globalist conspiracy against the United
States. Ruml was chairman of the New York Fed. It was he who devised
World War II "temporary" withholding. It was originally named for him:
the "Ruml pay-as-you-go plan."
In January, 1946, American Affairs published a speech by Beardsley Ruml.
The title was, "Taxes for Revenue Are Obsolete." In it, Ruml speaks of
two remarkable changes: "the gaining of vast new experience in the
management of central banks," and "the elimination, for domestic
purposes, of the convertibility of the currency into gold."
Under the heading, "What Taxes Are Really For," Ruml listed three main
purposes: "as an instrument of fiscal policy to help stabilize the
purchasing power of the dollar"; to express public policy in the
distribution of wealth and of income, as in the case of the progressive
income tax and estate taxes"; to express public policy in subsidizing or
in penalizing various industries and economic groups."
Redistribution of the wealth by government is communism. Subsidizing and
penalizing various industries by government is fascism. You are seeing
such fascism right now in the government "bailout" of certain favored
companies. For instance, the government saved Goldman Sachs but flushed
Lehman Brothers. What about stabilizing the purchasing power of the
dollar? Ruml says this by far is the most important reason for the
income tax and other federal taxes, sometimes called "the avoidance of
Ruml explains that "federal taxation has much to do with inflation and
deflation, with the prices which have to be paid for the things that are
bought and sold. . . ." If people have "too much" purchasing power,
prices will rise. ". . . This will mean that the dollar is worth less
than it was before - that is inflation. . . .
"The dollars the government spends become purchasing power in the hands
of the people who have received them. The dollars the government takes
by taxes cannot be spent by the people, and, therefore, these dollars
can no longer be used to acquire the things that are available for sale.
. . ." So this is what Meyer Jacobstein meant by "mopping up purchasing
The true purpose of the income tax, therefore, is to inhibit the
inflationary effect of ravenous government spending. The income tax
allows our rulers to juggle their fiscal balls in the air a bit longer,
by offering a safety valve through which the inflationary pressure
generated by that spending can more safely be released. The income tax
does that by transferring purchasing power from the people to the
government. Again, it has nothing at all to do with paying the
By the way, if you would like to read all this on paper, you will find
most of it in my book, TaxScam: How IRS Swindles You and What You Can Do
About It. There you will see a picture of the "tariff monster," from
Puck, a magazine of the time. Why I don't know, but they tell me it has
become something of a "minor classic," maybe merely because of its
advanced age: twenty one.
It originally was $9.95. Despite its "classic" status, we ask only $5.95
(plus shipping and handling) because the covers are no longer perfect,
in some cases no good. But the pages are like new, and, of course, so is
the information. You can order at alanstang.com. Click on STORE and
scroll down to the book.
All right, now you know why you pay income tax. Are you not inspired? On
April 15th, when you put your head on the block, you will do so happily,
maybe even singing the national anthem, in the knowledge that you are
doing your patriotic part to mop up, to fight inflation and save the
OR..you can start the LET'S "END WAR BY ENDING TAXES" CLUB!
You can be the president in your end of the city. HOLD MEETINGS!
CINDY SHEEHAN did her activist bit all alone and made headlines.
Imagine you using SOCIAL MEDIA to create an "END TAX GROUP. "
by Alan Stang -- one of Mike Wallace's original writers at
Channel 13 in New York, where he wrote some of the scripts that sent Mike to CBS.
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