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The Federal Income Tax Payment System is Misunderstood by Most Americans.

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At roughly the end of April each year, we celebrate Tax Freedom Day, when each American’s federal income tax payment is matched by their production and the money they earn afterward is clear profit from their labor. 

This amounts to around 30.8% of each American’s annual income. 

To illustrate how rampant taxation and spending has become over the last century, in 1900, Tax Freedom Day would have been celebrated on January 22, with each American contributing 5.9% of their annual income. 

The average American doesn’t celebrate this day, he just goes to back to work.

The truth is, most Americans are completely unaware of their tax burden.

If you were to ask around at your favorite coffee shop or watering hole, “what was your federal income tax payment for the year?”

Most people would say, “I didn’t pay anything this year, in fact, I got money back”. 

Welcome to the biggest ruse of the federal income tax code, the payroll withholding system. 

In 1913, upon ratification of the sixteenth amendment, employers were permitted to withhold income taxes from workers’ paychecks to settle the employee’s federal income tax payment. 

The voters challenged their representative and a law abolishing the practice was passed in 1917. 

This was the status quo until 1943, and each person was responsible for saving enough money to pay the tax every March 15.

The advantage was obvious, any and all monies received by the worker were available to be deposited, garner interest, and be utilized until the tax came due.

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The Great Ruse

In 1943, it all changed. Beardsley Ruml, chairman of the Federal Reserve Bank, petitioned Congress to pass the Current Tax Payment Act of 1943, which reestablished payroll withholding as the primary means for federal income tax payment. 

A marketing plan by the Fed was employed to make the public consider the move convenient, and America promptly fell asleep.

The lie to the people was that the individual would not have to set up separate savings plans, or write a ghastly looking check in March to pay their taxes. 

Additionally, if you overpaid the government, Washington would send a check to you! 

The ancillary effect, or the desired one based on your perspective, is that the American people would not notice how much money they were actually ceding to the government in the form of a federal income tax payment.

It worked, and today the common citizen has no idea why April 28 is so important.

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Socialism at It’s Finest

But wait, the depth of deceptive social engineering continues beyond simply not knowing how much you pay.

In 1975, Congress passed a piece of tax legislation to prevent abject poverty among the “working poor” called the Earned Income Tax Credit.

This program was meant to offset taxes paid by workers whose payroll tax placed their income below the poverty line, and allow them to continue to have a sustainable wage with which to provide for their families. 

Now, in addition, he can claim EIC, and receive money from the US Treasury!

Using 2007 numbers, if that father earns $15,399, in addition to not owing taxes, he will receive a check in the amount of $4,716, or a 30% increase in his total income. 

Is this not socialism? Is this not redistribution of wealth? Karl Marx said, “From each according to his abilities, to each according to his need”.

The federal government has made this phrase its hallmark through the earned income tax credit.

It didn’t work for the Soviet Union, and should not be tried here.

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