Debt & Taxes
Taxation

      The federal government imposes more than 100 taxes and fees on Americans.   Include state taxes and the average American worker is required to spend 110 out of 250 workdays just to pay their 2024 tax liability required by government.   So, it is not until June 7th that you can start working for yourself and your family instead of the government.   Despite all the other hardships imposed upon us by government, we Americans always manage to do our part, paying a total of $10.13 trillion in taxes in 2023.
      I want us to be free from government control and abuse.   Taxation, more than any other means, gives government control over its citizens.   Sure, politicians love spending your money but more than anything else they know taxation gives them absolute control over you.   Comply with taxation or suffer the consequences.   This is the reason why our Founding Fathers opposed income and property taxes.   When they expressed their concerns that the states and federal government could easily exploit citizens; they were not just speaking about the history of government abuse, but they themselves experienced it first-hand.   That is why the Founding Fathers wrote into our Constitution that all taxation will be based on economic productivity, and it must be uniform throughout the United States.

Income Tax

      In the early 20th Century, when members of Congress planned an amendment to change the Constitution for a federal income tax, citizens vigorously opposed it; however, as usual, Congress ignored the will of the people.   Some Congressmen recommended a maximum 5% limit on the new federal income tax, but they were excoriated in the press and laughed out of office.   President Wilson signed the 16th Amendment into law on October 3, 1913.   Soon after, the highest income tax rate jumped from 15% in 1916 to 67% in 1917, and then 77% in 1918.   This tax burden on America’s wealthiest entrepreneurs set in motion the events leading to the Great Depression.   The top marginal tax rate reached 94% by 1944.   To quote Margaret Thatcher, the problem with socialism is that you eventually run out of other people’s money.
      During the 1950’s, members of Congress colluded with the wealthiest in America writing more than 15,800 tax exemptions.   While politicians from both parties accepted bribes and kickbacks, these back-door deals freed up the cash entrepreneurs needed for the 1950s economic growth and expansion.   To mitigate political corruption and promote economic growth John F. Kennedy was the first president to lower income and corporate taxes.   JFK cut income taxes from a range of 20-94% to 14-65% and the corporate tax rate from 52% to 47%.   President Kennedy’s tax reductions fueled the economic boom of the 1960s.
      Income tax makes up 50% of all federal revenue each year.   Payroll taxes for Medicare and Social Security make up another 30%, half paid by employers and half paid by employees.   The top 5% of income earners pay 65% of this tax burden with the middle-class paying 32%.   The bottom 50% of income earners only pay the remaining 3% of the tax liability.   Those at or below the poverty level receive earned income credit meaning they get paid by the federal government for not working.

New Taxes

      When it comes to taking your hard-earned money the federal government and state’s unquenchable lust never seems to be satisfied.   Through President Biden’s Build Back Better Act (2021) and the Inflation Reduction Act (2022) his administration implemented new taxes while committing trillions of dollars to Green New deals.   This year, the Biden administration is considering adding 13 new taxes and increasing 42 other taxes with their “Reforming America’s Tax Code 2.0.”
      California, with all their societal problems keeps adding new taxes as people and businesses flee the state.   California is $145 billion in debt with a FY 2024 deficit of $68 billion, and $1 trillion unfunded liabilities.   Who knew the Eagles’ song, Hotel California © would become so prophetic as California’s new state “Exit Tax” took effect in 2024.   Individuals and businesses may not leave California until they have paid their state exit tax.   The tax is based on the value of a business or individual’s total assets, including property, possessions, stocks, and other investments.   California is even trying to impose this tax on those that have left the state years before the tax became law.
      Thanks to the New York Judge and Attorney General’s fraudulent civil case against Donald Trump, the legislatures of New York and California are working on a Wealth Tax to go after the assets of businesses and the wealthy.   These unprecedented new laws not only allow their assets to be taxed but will permit the government to perform a forensic audit on any business or individual they choose to target.   As previously mentioned, Democratic politicians never seem to think through the consequences of their actions so let’s see how well these new taxes work out for them.

Federal Debt

      Our government officials have proven themselves incompetent when it comes to spending your hard-earned tax dollars.   The federal government is so broke that it has made no effort to pay down the federal debt since 1999.   When the government spends 80% of their yearly revenue to pay for welfare and entitlement programs and another 10% just to pay the interest on the federal debt you can see why the federal government has no money to pay for any of the programs America desperately needs.
      Over the last 3 years, the federal government has added $5 billion every day to the federal debt. That is more than $1.8 trillion added each year.   Because of our government’s reckless spending, the Fed’s only recourse is to print more money, creating inflation.   This means your money and retirement savings are worth less and less each year.
      Despite America’s catastrophic financial problems, the Biden Administration has committed trillions of tax dollars to Green New Deals that will do nothing more than make the rich richer.   From 2009 to 2011, President Obama authorized the Department of Energy to give hundreds of billions of tax dollars to Green Companies.   VP Biden traveled and spoke at many of the companies on how their green technologies were going to save America, some just weeks before they declared bankruptcy.   80% of those companies were bankrupt or in a distressed status within 2 years.   However, hundreds of executives became instant millionaires after receiving government funding.

Paying Off the Federal Debt

      I want to make a few things perfectly clear. The Department of Treasury, the Federal Reserve, the Congressional Budget Office, and the White House’s Office of Management and Budget know without a doubt that our current tax structure can never produce enough revenue to pay off the federal debt.   They have worked out the math. It is their job to work out the math.   As a lifelong learner and researcher, I worked out the math many times on what would need to be accomplished for our current tax structure to pay off the federal debt.   Citizens would never put up with what is required, and our government has proven they are not capable of constraining themselves to make it possible.
      During WW II Americans were subjected to socialism for 4 years.   The government took control of all industries.   Citizens received scant rations of food for their entire family, and everyone worked long grueling hours with very low pay in support of the war effort.   Americans would need to be subjected to those same constraints for more than 40 years with the elimination of all welfare and entitlement programs in order to pay off our current federal debt.   My Currency Usage Tax will pay off the $34 trillion federal debt in less than 5 years without any of the pain and suffering.
Read how America’s Entitlements & Welfare causes deficit spending.
Return to America’s Economy in Crisis.