Tag: Federal Government

58 Years ago today… and one of the greatest speeches I’ve ever heard.

“…the full power of centralized government. THIS was the very thing the Founding Fathers sought to minimize. They knew that governments don’t control things.

A government can’t control the economy without controlling people. And they know when a government sets out to do that it must use force and coercion to achieve its purpose…”

“When the government tells you, ‘You’re depressed’. Lie down and be depressed…

…So they’re going to solve all the problems of human misery through government and government planning… well now if government planning and welfare had the answer and they had almost 30 years of it shouldn’t we expect government to read the score to us every once in a while?

Shouldn’t they be telling us about the decline each year and the number of people needing help, the reduction of need for public housing? But the REVERSE is true, each year the need grows greater, the program grows greater. We were told 4 years ago that 17 million people went to bed hungry each night, well that’s probably true – they were all on a diet. But NOW we’re told that 9.3 million families in this country are poverty stricken and on the basis of earning less than $3,000 a year. Welfare spending is 10 times greater than it was than the dark depths of the depression. We’re spending $45 billion dollars on Welfare. Now do a little arithmetic, you’ll find that if we divided the $45 billion up equally among those 9 million poor families, we’d be able to give each family $4,600 a year AND this added to their present income should eliminate poverty. DIRECT AID to the poor, however, is running at about $600 per family… Would seem that someplace there must be some OVERHEAD.”

Tax Law is created by Congress, not by the IRS

Just sitting here and reading some social media posts makes me laugh when I read about, “Oh you should go after the IRS…  It is the IRS’ fault… IRS this… IRS that…”

Stop just a few minutes here and think about it.   Who creates tax laws?  Who then votes certain bills to make such a tax become a law?   IT is Congress itself.  Not the IRS. The IRS has to “enforce” the tax laws passed by such Congress in order to collect the taxes THAT CONGRESS created and voted for and therefore passed to become a law – that then affects the local US Citizens.

It is very similar in comparison to judges and even supreme court justices… local, state and federal officials create(s) and pass(es) laws… Then it is up to the people in law enforcement (local police, Sheriffs, lawyers, judges, supreme court judges, etc.) to interpret and apply such law to each individual case.

Oh, but of course – the regular citizen, regular folks don’t even seem to bother to understand the above. And just attack the people who are trying to enforce the laws (again I say) created by and passed by “elected officials”.

Here is where I want to visually show everyone what our current Federal Income Tax System looks like when we pay our file and pay our taxes every April 15th (each year). Courtesy of Nerdwallet.

2021-2022 Tax Brackets and Federal Income Tax Rates:

I want to refer back to my previous blog simply explaining the “Laffer Curve”. This blog was posted back on January 11, 2021.

Tax Rates – The Laffer Curve

Our current Federal Tax system is a progressive tax system just by looking at the tax rates above from Nerd Wallet. They basically took it directly from the IRS website and obviously is confirmed by Congress. It looks complicated, right? Because Congress made it complicated.

Again, Congress has made these tax laws.

I mean if you want another source here’s the tax rate table / tax schedule from T. Rowe Price…

IRS Tax Rate Schedules – T.Rowe Price

The Federal Income tax was made via the 16th amendment back in 1913 – “Passed by Congress on July 2, 1909, and ratified February 3, 1913, the 16th amendment established Congress’s right to impose a Federal income tax.

We all pay taxes one way or another… Whether it be through sales taxes, property taxes, estate taxes, federal income taxes, local taxes, state income taxes… That would be another whole discussion topic on it’s own – a Pandora’s box if you will.

Here’s my questions to you:

1 – Since we all pay taxes (one way shape or form) would you still want a ‘progressive federal income tax’ or a ‘flat tax’?

2 – Again, is it the IRS’ fault that our tax system is the way it is or is it Congress who made the actual laws for these taxes?

Visually here’s what a flat tax would look like versus the other Federal Income Tax table I showed to you, up above.

Milton Friedman, video, “Money and Inflation”

Milton Friedman was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.

The video below is about 1 hour and 26 minutes long, it is very informational. Please take the time to watch it as it is also educational.