On Tax Reduction

First, to taxes as I see it. Every Presidential candidate since Nero has promised lower taxes. Here’s a quickie run-down of how the income tax occurred in the US.

1791 to 1802 federal taxes on booze, tobacco, snuff, slaves, refined sugar, carriages, property sold at auction and corporate bonds. The war of 1812 caused taxes to be levied on gold, silverware, jewelry and watches.

In 1817, Congress nixed all internal taxation and relied on tariffs on imported goods to sustain the country’s financial needs. (This would work for us now if Congress would impose tariffs on all imported goods giving no concessions to “developing” nations).

Then in 1862, to finance the Civil War, Congress enacted the nation’s first income tax. Folks earning $600 to $10,000 per year were assessed a 3 percent income tax. Those earning more than $10,000 paid more. At that time, the infamous “inheritance tax” was born. Boo Hiss!

Then in 1868, Congress again eliminated all income tax.

Finally, in 1913, Congress established a permanent income tax when they passed the 16th amendment. In 1986, Reagan lowered the top tax bracket from 50 percent to 28 percent.

There’s the nutshell version of the income tax.

Now Trump says he wants to lower taxes again. Some folks are asking, “If they lower taxes, how are we ever going to get out of this nearly 20 trillion dollar debt we have saddled our children with?” (I know James, I know.)

Here’s how as it has been ‘splained to me.

If the government lowers taxes on us peons, we will have more liquid cash to spend on stuff. We can eat at fancy restaurants more often that at McDonalds. We can buy a better car and maybe remodel the house. Of course, an ATV tops the list of things we need. We can buy a Powerball Lottery ticket, win $243 million dollars and raise cows until the money runs out.

You get the picture? Less taxation = more money to spend. Then there’s the four-day work week, which gives us an extra day to spend the extra money. Yikes.

But getting back to the “how to reduce the national debt quandry.” Here’s how. By reducing personal taxes for the population, more money is spent at Corporate American outlets creating a stronger economy.

Most everyone doesn’t know that corporate taxes are higher in the United States than are personal taxes. Now you do know and maybe you can see how lowering our taxes will increase tax revenues received from corporate America. We’re not raising corporate taxes ... we’re just allowing the corporation to make more taxable revenue.

You might say, “Virgil, that’s an oversimplificationality,” to which I say, “I’m over simplified my ownself.”

Now I’m off to the Cabin Cafe for a bowl of cheese and a grilled soup sandwich on whole wheat. Yum Yum.

That’s it for now folks. Thanks for listening.