Income Tax Quotes

The hardest thing in the world to understand is the income tax.

There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.

One thing is clear: The Founding Fathers never intended a nation where citizens would pay nearly half of everything they earn to the government.

When there is an income tax, the just man will pay more and the unjust less on the same amount of income.

Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are -- a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.

Income tax returns are the most imaginative fiction being written today.

The best measure of a man's honesty isn't his income tax return. It's the zero adjust on his bathroom scale.

This is a question too difficult for a mathematician. It should be asked of a philosopher"(when asked about completing his income tax form)

The income tax has made more liars out of the American people than golf has.

So much in writing depends on the superficiality of one's days. One may be preoccupied with shopping and income tax returns and chance conversations, but the stream of the unconscious continues to flow undisturbed, solving problems, planning ahead: one sits down sterile and dispirited at the desk, and suddenly the words come as though from the air: the situations that seemed blocked in a hopeless impasse move forward: the work has been done while one slept or shopped or talked with friends.

fuck she pulled her dress off over her head and I saw the panties indented somewhat into the crotch. it's only human. now we've got to do it. I've got to do it after all that bluff. it's like a party-- two trapped idiots. under the sheets after I have snapped off the light her panties are still on. she expects an opening performance. I can't blame her. but wonder why she's here with me? where are the other guys? how can you be lucky? having someone the others have abandoned? we didn't have to do it yet we had to do it. it was something like establishing new credibility with the income tax man. I get the panties off. I decide not to tongue her. even then I'm thinking about after it's over. we'll sleep together tonight trying to fit ourselves inside the wallpaper. I try, fail, notice the hair on her head mostly notice the hair on her head and a glimpse of nostrils piglike I try it again.

On my income tax 1040 it says 'Check this box if you are blind.' I wanted to put a check mark about three inches away.

The only imaginative fiction being written today is income tax returns.

A homeless man once told me that dancing to rap music is the cultural equivalent of masturbating, and I'd sort of fell the same way about playing John Madden Football immediately after filing my income tax: It's fun, but - somehow - vaguely pathetic.

Why are you so afraid of the word ‘Fascism,’ Doremus? Just a word—just a word! And might not be so bad, with all the lazy bums we got panhandling relief nowadays, and living on my income tax and yours—not so worse to have a real Strong Man, like Hitler or Mussolini—like Napoleon or Bismarck in the good old days—and have ‘em really run the country and make it efficient and prosperous again. ‘Nother words, have a doctor who won’t take any back-chat, but really boss the patient and make him get well whether he likes it or not!

And to this end they built themselves a stupendous super-computer which was so amazingly intelligent that even before its data banks had been connected up it had started from I think therefore I am and got as far as deducing the existence of rice pudding and income tax before anyone managed to turn it off.

I needed a vacation. I needed 5 women. I needed to get the wax out of my ears. My car needed an oil change. I'd failed to file my damned income tax. One of the stems had broken off of my reading glasses. There were ants in my apartment. I needed to get my teeth cleaned. My shoes were run down at the heels. I had insomnia. My auto insurance had expired. I cut myself every time i shaved. I hadn't laughed in 6 years. I tended to worry when there was nothing to worry about. And when there was something to worry about, i got drunk.

The Italian neofascists were learning from the U.S. reactionaries how to achieve fascism's class goals within the confines of quasi-democratic forms: use an upbeat, Reaganesque optimism; replace the jackbooted militarists with media-hyped crowd pleasers; convince people that government is the enemy - especially its social service sector - while strengthening the repressive capacities of the state; instigate racist hostility and antagonisms between the resident population and immigrants; preach the mythical virtues of the free market; and pursue tax and spending measures that redistribute income upward.

Whether he knows it or not, the middle-income American is taxed as though he were living in a socialist society.

By one estimate, simply collecting unpaid federal income taxes from the top 1 percent of households would bring in some $175 billion a year. We could just about fill the entire poverty gap in America if the richest among us simply paid all the taxes they owed.

We are carrying contraband words with us, memorized, tucked away in tattered journals and stored magically on disks in Anna's left pocket. Canadian words, queer words that we spoke on-stage for money in the land of the brave. With no valid permit, license, visa or contract to do so. Felons, really, all of us, and now we intended to flee the scene without paying income tax on the twelve dollars and fifty American cents we each made. It's just this kind of shameless law-breaking that gives all poets a bad name.

Restructuring of federal income tax rates can have significant impacts on municipal bond assets.

Julia's unhappy relationship with the Inland Revenue was due to her omission, during four years of modestly successful practice at the Bar, to pay any income tax. The truth is, I think, that she did not, in her heart of hearts, really believe in income tax. It was a subject which she had studied for examinations and on which she had thereafter advised a number of clients: she naturally did not suppose, in these circumstances, that it had anything to do with real life.

The lottery is a tax on poor people and on people who can’t do math. Rich people and smart people would be in the line if the lottery were a real wealth-building tool, but the truth is that the lottery is a rip-off instituted by our government. This is not a moral position; it is a mathematical, statistical fact. Studies show that the zip codes that spend four times what anyone else does on lottery tickets are those in lower-income parts of town. The lottery, or gambling of any kind, offers false hope, not a ticket out.

The freedoms won by Americans in 1776 were lost in the revolution of 1913.

1913 wasn't a very good year. 1913 gave us the income tax, the 16th amendment and the IRS.

Dora was having trouble with her income tax, for she was entangled in that curious enigma which said the business was illegal and then taxed her for it.

If you want to know how I felt, imagine your own feelings on waking one morning to find that income tax or unrequited love had somehow vanished from the world.

The young man shivered. He rolled the stock themes of fantasy over in his mind: cars and stockbrokers and commuters, housewives and police, agony columns and commercials for soap, income tax and cheap restaurants, magazines and credit cards and streetlights and computers... 'It is escapism, true,' he said, aloud. 'But is not the highest impulse in mankind the urge toward freedom, the drive to escape?

We may test the hypothesis that the State is largely interested in protecting itself rather than its subjects by asking: which category of crimes does the State pursue and punish most intensely—those against private citizens or those against itself? The gravest crimes in the State’s lexicon are almost invariably not invasions of private person or property, but dangers to its own contentment, for example, treason, desertion of a soldier to the enemy, failure to register for the draft, subversion and subversive conspiracy, assassination of rulers and such economic crimes against the State as counterfeiting its money or evasion of its income tax. Or compare the degree of zeal devoted to pursuing the man who assaults a policeman, with the attention that the State pays to the assault of an ordinary citizen. Yet, curiously, the State’s openly assigned priority to its own defense against the public strikes few people as inconsistent with its presumed raison d’etre.

this fear of growing to resemble Europe was part of the reason why the United States in 1910–1920 pioneered a very progressive estate tax on large fortunes, which were deemed to be incompatible with US values, as well as a progressive income tax on incomes thought to be excessive. Perceptions of inequality, redistribution, and national identity changed a great deal over the course of the twentieth century, to put it mildly.

When the government is able to collect tax and seize private property without just compensation, it is an indication that the public is ripe for surrender and is consenting to enslavement and legal encroachment. A good and easily quantified indicator of harvest time is the number of public citizens who pay income tax despite an obvious lack of reciprocal or honest service from the government.

the decrease in the top marginal income tax rate led to an explosion of very high incomes, which then increased the political influence of the beneficiaries of the change in the tax laws, who had an interest in keeping top tax rates low or even decreasing them further and who could use their windfall to finance political parties, pressure groups, and think tanks.

In contrast to what many people in Britain and the United States believe, the true figures on growth (as best one can judge from official national accounts data) show that Britain and the United States have not grown any more rapidly since 1980 than Germany, France, Japan, Denmark, or Sweden. In other words, the reduction of top marginal income tax rates and the rise of top incomes do not seem to have stimulated productivity (contrary to the predictions of supply-side theory) or at any rate did not stimulate productivity enough to be statistically detectable at the macro level.

the larger the percentage of the national income taken by taxes the greater the deterrent to private production and employment. When the total tax burden grows beyond a bearable size, the problem of devising taxes that will not discourage and disrupt production becomes insoluble.

They call themselves conservatives but that’s not it, either. They don’t want to conserve what we now have. They’d rather take the country backwards – before the 1960s and 1970s, and the Environmental Protection Act, Medicare, and Medicaid; before the New Deal, and its provision for Social Security, unemployment insurance, the forty-hour workweek, and official recognition of trade unions; even before the Progressive Era, and the first national income tax, antitrust laws, and Federal Reserve. They’re not conservatives. They’re regressives. And the America they seek is the one we had in the Gilded Age of the late nineteenth century.

There's a grosser irony about Politically Correct English. This is that PCE purports to be the dialect of progressive reform but is in fact--in its Orwellian substitution of the euphemisms of social equality for social equality itself--of vastly more help to conservatives and the US status quo than traditional SNOOT prescriptions ever were. Were I, for instance, a political conservative who opposed using taxation as a means of redistributing national wealth, I would be delighted to watch PC progressives spend their time and energy arguing over whether a poor person should be described as "low-income" or "economically disadvantaged" or "pre-prosperous" rather than constructing effective public arguments for redistributive legislation or higher marginal tax rates. [...] In other words, PCE acts as a form of censorship, and censorship always serves the status quo.

Property taxes' rank right up there with 'income taxes' in terms of immorality and destructiveness. Where 'income taxes' are simply slavery using different words, 'property taxes' are just a Mafia turf racket using different words. For the former, if you earn a living on the gang's turf, they extort you. For the latter, if you own property in their territory, they extort you. The fact that most people still imagine both to be legitimate and acceptable shows just how powerful authoritarian indoctrination is. Meanwhile, even a brief objective examination of the concepts should make anyone see the lunacy of it. 'Wait, so every time I produce anything or trade with anyone, I have to give a cut to the local crime lord??' 'Wait, so I have to keep paying every year, for the privilege of keeping the property I already finished paying for??' And not only do most people not make such obvious observations, but if they hear someone else pointing out such things, the well-trained Stockholm Syndrome slaves usually make arguments condoning their own victimization. Thus is the power of the mind control that comes from repeated exposure to BS political mythology and propaganda.

Because the state uses violence to achieve its ends, and there is no rational end to the use of violence, states grow until they destroy civilized interactions through the corruption of money, contracts, honesty, family and self-reliance. No state in history has ever been contained. It’s only taken a little more than a century for the US – founded on the idea of limited government, to break the bonds of the constitution, institute the income tax, take control of the money supply and the educational system and begin its catastrophic expansion.

Factor in the fact that factories should only hire people they make themselves, I believe, and you can see why I want to be self-employed and own a factory. This would mean I’d have thousands of clones of myself working for me. Think about it. I’ll increase my income thousands of times over, but I’ll only be paying tax for one person. 


When the government is able to collect tax and seize private property without just compensation, it is an indication that the public is ripe for surrender and is consenting to enslavement and legal encroachment. A good and easily quantified indicator of harvest time is the number of public citizens who pay income tax despite an obvious lack of reciprocal or honest service from the government.

Meeting writers is always so disappointing. I got over wanting to meet live writers quite a long time ago. There is this terrific book that has changed your life, and then you meet the author, and he has shifty eyes and funny shoes and he won't talk about anything except the injustice of the United States income tax structure toward people with fluctuating income, or how to breed Black Angus cows, or something.

Fuck you,' Samuel said as he stole the ball, drove down the court, and went in for a two-handed, rattle-the-foundations, ratify-a-treaty, abolish-income-tax, close-the-uranium-mines monster dunk.

When your child is a little older, you can teach him about our tax system in a way that is easy to grasp. Offer him, say, $10 to mow the lawn. When he has mowed it and asks to be paid, withhold $5 and explain that this is income tax. Give $1 to his younger brother, and tell him that this is "fair". Also, explain that you need the other $4 yourself to cover the administrative costs of dividing the money. When he cries, tell him he is being "selfish" and "greedy". Later in life he will thank you.

Death and taxes in life are certain, knowing how to pay only your fair share is third.

The pressure of the environment cramps art as it cramps behaviour. One may challenge this environment, but one has to pay for it, and the price is neurotic guilt. There never was an intelligentsia without a guilt complex; it is the income tax one has to pay for wanting to make others richer.

The tax cuts enacted in 2001 and 2003—and extended for two years in 2010—in 2011 saved the richest 1.4 million taxpayers (the top 1 percent) more money than the rest of America’s 140.89 million taxpayers received in total income.

Just what do we tax under our current system? Work, that’s what. Hard work and productivity. The harder you work, the more you achieve. The more you achieve, the more you’re taxed. To make matters worse, under our “progressive” income tax system, the harder you work, the more severe the punishment actually is!

We live in the wealthiest nation in the history of the world, but that reality means little because almost all of that wealth is controlled by a tiny handful of individuals. There is something profoundly wrong when the top one-tenth of 1 percent owns almost as much as the bottom 90 percent, and when 99 percent of all new income goes to the top 1 percent. There is something profoundly wrong when one family owns more wealth than the bottom 130 million Americans. This type of immoral, unsustainable economy is not what America is supposed to be about. This has got to change, and together we will change it. The change begins when we say to the billionaire class: “You can’t have it all. You can’t get huge tax breaks while children in this country go hungry. You can’t continue sending our jobs to China while millions are looking for work. You can’t hide your profits in the Cayman Islands and other tax havens, while there are massive unmet needs in every corner of this nation. Your greed has got to end. You cannot take advantage of all the benefits of America if you refuse to accept your responsibilities as Americans.

The strategy worked like a charm, and in 1980 Jimmy Carter was swept away like offal by the “Reagan Revolution,” which ushered in eight years of berserk looting of the federal treasury and the economic crippling of the middle class. That was the eighties, folks. That was the feeding frenzy of the New Rich, who found themselves wallowing in excess profits as their maximum income tax rate got chopped down to 31 percent and who were welcomed like brothers in the White House at all hours of the day or night.

After an initial phase of looting, and gold and silver lust, the Spanish created a web of institutions designed to exploit the indigenous peoples. The full gamut of encomienda, mita, repartimiento, and trajin was designed to force indigenous people’s living standards down to a subsistence level and thus extract all income in excess of this for Spaniards. This was achieved by expropriating their land, forcing them to work, offering low wages for labor services, imposing high taxes, and charging high prices for goods that were not even voluntarily bought.

Alas, my “fiddle playing” will not get me to Carnegie Hall — or even to a high school recital. Berkshire, on your behalf and mine, will send the Treasury $3.3 billion for tax on its 2003 income, a sum equaling 2½% of the total income tax paid by all U.S. corporations in fiscal 2003.

Wisdom is really the key to wealth. With great wisdom, comes great wealth and success. Rather than pursuing wealth, pursue wisdom. The aggressive pursuit of wealth can lead to disappointment. Wisdom is defined as the quality of having experience, and being able to discern or judge what is true, right, or lasting. Wisdom is basically the practical application of knowledge. Rich people have small TVs and big libraries, and poor people have small libraries and big TVs. Become completely focused on one subject and study the subject for a long period of time. Don't skip around from one subject to the next. The problem is generally not money. Jesus taught that the problem was attachment to possessions and dependence on money rather than dependence on God. Those who love people, acquire wealth so they can give generously. After all, money feeds, shelters, and clothes people. They key is to work extremely hard for a short period of time (1-5 years), create abundant wealth, and then make money work hard for you through wise investments that yield a passive income for life. Don't let the opinions of the average man sway you. Dream, and he thinks you're crazy. Succeed, and he thinks you're lucky. Acquire wealth, and he thinks you're greedy. Pay no attention. He simply doesn't understand. Failure is success if we learn from it. Continuing failure eventually leads to success. Those who dare to fail miserably can achieve greatly. Whenever you pursue a goal, it should be with complete focus. This means no interruptions. Only when one loves his career and is skilled at it can he truly succeed. Never rush into an investment without prior research and deliberation. With preferred shares, investors are guaranteed a dividend forever, while common stocks have variable dividends. Some regions with very low or no income taxes include the following: Nevada, Texas, Wyoming, Delaware, South Dakota, Cyprus, Liechtenstein, Luxembourg, Panama, San Marino, Seychelles, Isle of Man, Channel Islands, Curaçao, Bahamas, British Virgin Islands, Brunei, Monaco, Qatar, United Arab Emirates, Saudi Arabia, Bahrain, Bermuda, Kuwait, Oman, Andorra, Cayman Islands, Belize, Vanuatu, and Campione d'Italia. There is only one God who is infinite and supreme above all things. Do not replace that infinite one with finite idols. As frustrated as you may feel due to your life circumstances, do not vent it by cursing God or unnecessarily uttering his name. Greed leads to poverty. Greed inclines people to act impulsively in hopes of gaining more. The benefit of giving to the poor is so great that a beggar is actually doing the giver a favor by allowing the person to give. The more I give away, the more that comes back. Earn as much as you can. Save as much as you can. Invest as much as you can. Give as much as you can.

You've been telling us about how to secure peace, but come on, now, General—just among us Rotarians and Rotary Anns—'fess up! With your great experience, don't you honest, cross-your-heart, think that perhaps—just maybe—when a country has gone money-mad, like all our labor unions and workmen, with their propaganda to hoist income taxes, so that the thrifty and industrious have to pay for the shiftless ne'er-do-weels, then maybe, to save their lazy souls and get some iron into them, a war might be a good thing? Come on, now, tell your real middle name, Mong General!

The only beneficiaries of income taxation are the politicians, for it not only gives them the means by which they can increase their emoluments but it also enables them to improve their importance. The have-nots who support the politicians in the demand for income taxation do so only because they hate the haves; although they delude themselves with the thought that they might get some of the pelt the fact is that the taxing of incomes cannot in any way improve their economic condition.

The [carried-interest] loophole was in essence an accounting trick that enabled hedge fund and private equity managers to categorize huge portions of their income as ‘interest,’ which was taxed at the 15 percent rate then applied to long-term capital gains. This was less than half the income tax rate paid by other top-bracket wage earners. Critics called the loophole a gigantic subsidy to millionaires and billionaires at the expense of ordinary taxpayers. The Economic Policy Institute, a progressive think tank, estimated that the hedge fund loophole cost the government over $6 billion a year—the cost of providing health care to three million children. Of that total, it said, almost $2 billion a year from the tax break went to just twenty-five individuals.

You could choose to live in either America or Denmark. In high-tax Denmark, your disposable income after taxes and transfers would be around $15,000 lower than in the States. But in return for your higher tax bill, you would get universal health care (one with better outcomes than in the US), free education right up through the best graduate schools, worker retraining programs on which the state spends seventeen times more as a percentage of GDP than what is spent in America, as well as high-quality infrastructure, mass transit, and many beautiful public parks and other spaces. Danes also enjoy some 550 more hours of leisure time a year than Americans do. If the choice were put this way—you can take the extra $15,000 but have to work longer hours, take fewer vacation days, and fend for yourself on health care, education, retraining, and transport—I think most Americans would choose the Danish model.

Once a rebel, always a rebel. You can't help being one. You can't deny that. And it's best to be a rebel so as to show 'em it don't pay to try to do you down. Factories and labour exchanges and insurance offices keep us alive and kicking - so they say - but they're booby-traps and will suck you under like sinking-sands if you're not careful. Factories sweat you to death, labour exchanges talk you to death, insurance and income tax offices milk money from your wage packets and rob you to death. And if you're still left with a tiny bit of life in your guts after all this boggering about, the army calls you up and you get shot to death. And if you're clever enough to stay out of the army you get bombed to death. Ay, by God, it's a hard life if you don't weaken, if you don't stop that bastard government from grinding your face in the muck, though there ain't much you can do about it unless you start making dynamite to blow their four-eyed clocks to bits.

The alienation, the downright visceral frustration, of the new American ideologues, the bone in their craw, is the unacknowledged fact that America has never been an especially capitalist country. The postal system, the land grant provision for public education, the national park system, the Homestead Act, the graduated income tax, the Social Security system, the G.I. Bill -- all of these were and are massive distributions or redistributions of wealth meant to benefit the population at large.

Everyone knows about market risk and management risk. But there are a variety of non obvious risks to consider when managing a portfolio of investments. They include political risk, share premiums and discounts risk, Interest Rate risk, Income Risk, Tax law changes risk, valuation risk, and liquidity risk, among others. This is why professional active portfolio management is the way to go.

Right now the top 50 percent of taxpayers pay almost 96 percent of the taxes. The top income earners--the evil top 1 percent--earn about 16.5 percent of the income and pay almost 33.7 percent of the income taxes. This is what Democrats call "not paying your fair share.

In a truly civilized society there wouldn't be any billionaire, nor will there be any homeless, for all the revenue generated through taxing the rich would be distributed among the people through welfare initiatives.

On the morning of October 31, he received a notice informing him that all of his property, including his bank accounts and safety deposit boxes, had been attached to satisfy a delinquent judgment obtained against him in a trial involving a deficiency in his personal income tax of three years ago. It was a formal notice, complying with every requirement of the law—except that no such deficiency had ever existed and no such trial had ever taken place.

Take childcare for example, an issue that never gets much support beyond lip service in the feminist world, despite it being something that would benefit the majority of women. Once you reach a certain income level, it’s easier and more convenient for you to take care of your own childcare needs than to pay the taxes or contribute to a system that would help all women. If your child is in a failing school, it’s much more convenient to place your child in a private or charter school than to organize ways to improve the situation for the entire community. This also applies to expanding social welfare programs, supporting community clinics, and so on. As a woman’s ability to take care of herself expands thanks to feminist efforts, the feminist goals she’s willing to really fight for, or contribute time and money and effort to, shrink.

From the perspective of the world's national security apparatuses you exist in several locations. You appear on property and income-tax registries, on passport and ID card databases. You show up on passenger manifests and telephone logs . . . You are fingertip swirls, facial ratios, dental records, voice patterns, spending trails, e-mail threads.

... economists recognize that, other things equal, cuts in tax rates reduce tax revenues in percentage terms by less than the tax-rate reductions. Similarly, tax-rate increases do not raise tax revenues by as much in percentage terms as the tax-rate increases. This is true because changes in marginal tax rates alter taxpayer behavior and thus affect taxable income.

We have the money. We’ve just made choices about how to spend it. Over the years, lawmakers on both sides of the aisle have restricted housing aid to the poor but expanded it to the affluent in the form of tax benefits for homeowners. 57 Today, housing-related tax expenditures far outpace those for housing assistance. In 2008, the year Arleen was evicted from Thirteenth Street, federal expenditures for direct housing assistance totaled less than $40.2 billion, but homeowner tax benefits exceeded $171 billion. That number, $171 billion, was equivalent to the 2008 budgets for the Department of Education, the Department of Veterans Affairs, the Department of Homeland Security, the Department of Justice, and the Department of Agriculture combined. 58 Each year, we spend three times what a universal housing voucher program is estimated to cost (in total ) on homeowner benefits, like the mortgage-interest deduction and the capital-gains exclusion. Most federal housing subsidies benefit families with six-figure incomes. 59 If we are going to spend the bulk of our public dollars on the affluent—at least when it comes to housing—we should own up to that decision and stop repeating the politicians’ canard about one of the richest countries on the planet being unable to afford doing more. If poverty persists in America, it is not for lack of resources.

The relationship between the people and their money in California is such that you can pluck almost any city at random and enter a crisis. San Jose has the highest per capita income of any city in the United States, after New York. It has the highest credit rating of any city in California with a population over 250,000. It is one of the few cities in America with a triple-A rating from Moody’s and Standard & Poor’s, but only because its bondholders have the power to compel the city to levy a tax on property owners to pay off the bonds. The city itself is not all that far from being bankrupt.

Contemporary American politics also revolve around this contradiction. Democrats want a more equitable society, even if it means raising taxes to fund programmes to help the poor, elderly and infirm. But that infringes on the freedom of individuals to spend their money as they wish. Why should the government force me to buy health insurance if I prefer using the money to put my kids through college? Republicans, on the other hand, want to maximise individual freedom, even if it means that the income gap between rich and poor will grow wider and that many Americans will not be able to afford health care.

But Parliament cannot see how it is the state's job to create work. Are not these matters in God's hands, and is not poverty and dereliction part of his eternal order? To everything there is a season: a time to starve and a time to thieve. If rain falls for six months solid and rots the grain in the fields, there must be providence in it; for God knows his trade. It is an outrage to the rich and enterprising, to suggest that they should pay an income tax, only to put bread in the mouths of the workshy. And if Secretary Cromwell argues that famine provokes criminality: well, are there not hangmen enough?

America's industrial success produced a roll call of financial magnificence: Rockefellers, Morgans, Astors, Mellons, Fricks, Carnegies, Goulds, du Ponts, Belmonts, Harrimans, Huntingtons, Vanderbilts, and many more based in dynastic wealth of essentially inexhaustible proportions. John D. Rockefeller made $1 billion a year, measured in today's money, and paid no income tax. No one did, for income tax did not yet exist in America. Congress tried to introduce an income tax of 2 percent on earnings of $4,000 in 1894, but the Supreme Court ruled it unconstitutional. Income tax wouldn't become a regular part of American Life until 1914. People would never be this rich again. Spending all this wealth became for many a more or less full-time occupation. A kind of desperate, vulgar edge became attached to almost everything they did. At one New York dinner party, guests found the table heaped with sand and at each place a little gold spade; upon a signal, they were invited to dig in and search for diamonds and other costly glitter buried within. At another party - possibly the most preposterous ever staged - several dozen horses with padded hooves were led into the ballroom of Sherry's, a vast and esteemed eating establishment, and tethered around the tables so that the guests, dressed as cowboys and cowgirls, could enjoy the novel and sublimely pointless pleasure of dining in a New York ballroom on horseback.

In his history, Rich People’s Movements: Grassroots Campaigns to Untax the One Percent, Martin notes that the passage of the income tax in 1913 was regarded as calamitous by many wealthy citizens, setting off a century-long tug-of-war in which they fought repeatedly to repeal or roll back progressive forms of taxation. Over the next century, wealthy conservatives developed many sophisticated and appealing ways to wrap their antitax views in public-spirited rationales. As they waged this battle, they rarely mentioned self-interest, but they consistently opposed high taxes that fell most heavily on themselves.

I use “anticapitalist” because conservative defenders of capitalism regularly say their liberal and socialist opponents are against capitalism. They say efforts to provide a safety net for all people are “anticapitalist.” They say attempts to prevent monopolies are “anticapitalist.” They say efforts that strengthen weak unions and weaken exploitative owners are “anticapitalist.” They say plans to normalize worker ownership and regulations protecting consumers, workers, and environments from big business are “anticapitalist.” They say laws taxing the richest more than the middle class, redistributing pilfered wealth, and guaranteeing basic incomes are “anticapitalist.” They say wars to end poverty are “anticapitalist.” They say campaigns to remove the profit motive from essential life sectors like education, healthcare, utilities, mass media, and incarceration are “anticapitalist.” In doing so, these conservative defenders are defining capitalism. They define capitalism as the freedom to exploit people into economic ruin; the freedom to assassinate unions; the freedom to prey on unprotected consumers, workers, and environments; the freedom to value quarterly profits over climate change; the freedom to undermine small businesses and cushion corporations; the freedom from competition; the freedom not to pay taxes; the freedom to heave the tax burden onto the middle and lower classes; the freedom to commodify everything and everyone; the freedom to keep poor people poor and middle-income people struggling to stay middle income, and make rich people richer. The history of capitalism—of world warring, classing, slave trading, enslaving, colonizing, depressing wages, and dispossessing land and labor and resources and rights—bears out the conservative definition of capitalism.

The wealthy have also fought to underfund and defang the Internal Revenue Service, so it doesn’t have the resources to audit or fight dubious deductions. Only about 6 percent of tax returns of those with income of more than $1 million are audited, along with 0.7 percent of business tax returns. Meanwhile, there is one group that the IRS scrutinizes rigorously: the working poor with incomes below $20,000 a year who receive the Earned Income Tax Credit. More than one-third of all tax audits are focused on that group struggling to make ends meet, even as the agency cuts back on audits of the wealthy—while the top 5 percent of taxpayers account for more than half of all underreported income.

I object to all punishment whatsoever. I don't want to punish anybody, but there are an extraordinary number of people who I want to kill. Not in any unkind or personal spirit. But it must be evident to all of you, you must all know half a dozen people at least, who are no use in this world; who are more trouble than they are worth. And I think it would be a good thing to make everybody come before a properly appointed board just as he might come before the income tax commissioners and say every 5 years or every 7 years, just put them there, and say, sir or madam, now will you be kind enough to justify your existence? If you can’t justify your existence; if you’re not pulling your weight in the social boat; if you are not producing as much as you consume or perhaps a little more, then clearly we cannot use the big organization of our society for the purpose of keeping you alive, because your life does not benefit us, and it can’t be of very much use to yourself.

when personal incomes are taxed 50, 60 or 70 percent. People begin to ask themselves why they should work six, eight or nine months of the entire year for the government, and only six, four or three months for themselves and their families. If they lose the whole dollar when they lose, but can keep only a fraction of it when they win, they decide that it is foolish to take risks with their capital.

A people who are intent on getting something-for-nothing from government cannot cavil over the infringement of their rights by that government; in fact, if the price demanded for the gratuities is the relinquishment of rights, they are not averse to paying it. There is evidence enough that this trade is often made, and that the government is able to enter into it because of its income-tax revenues.

So," she said. All it was was no wheels on Profane, the boy a born pedestrian. Under his own power which was also power over her. Then what was she doing: declaring herself a dependent? As if here were the heart's authentic income-tax form, tortuous enough, mucked up with enough polysyllabic words to take her all of twenty-two years to figure out. At least that long: for surely it was complicated, being a duty you could rightfully avoid with none of fancy's Feds ever to worry about tracking you down on it, but. That "but." If you did take the trouble, even any first step, it meant stacking income against output; and who knew what embarrassments, exposés of self that might drag you into? Strange the places these things can happen in. Stranger that they ever do happen. She headed for the phone. It was in use. But she could wait.

A direct tax upon the wages of labour, therefore, though the labourer might perhaps pay it out of his hand, could not properly be said to be even advanced by him, at least if the demand for labour and the average price of provisions remained the same after the tax as before it. In all such cases, not only the tax but something more than the tax would in reality be advanced by the person who immediately employed him.

The rest of us, on the ·other hand-we members of the protected classes-have grown increasingly· dependent on our welfare programs. In 2020 the federal government spent more than $193 billion on homeowner subsidies, a figure that far exceeded the amount spent on direct housing assistance for low income families ($53 billion). Most families who enjoy those subsidies have six-figure incomes and are white. Poor families lucky enough to live in government-owned apartments of often have to deal with mold and even lead paint, while rich families are claiming the mortgage interest deduction on first and second homes. The lifetime limit for cash welfare to poor parents is five years, but families claiming the mortgage interest deduction may do so for the length of the mortgage, typically thirty years. A fifteen-story public housing tower and a mortgaged suburban home are both government subsidized, but only one looks (and feels) that way. If you count all public benefits offered by the federal government, America's welfare state (as a share of its gross domestic product) is the second biggest in the world, after France's. But that's true only if you include things like government-subsidized retirement benefits provided by employers, student loans and 529 college savings plans, child tax credits, and homeowner subsidies: benefits disproportionately flowing to Americans well above the poverty line. If you put aside these tax breaks and judge the United States solely by the share of its GDP allocated to programs directed at low-income citizens, then our investment in poverty reduction is much smaller than that of other rich nations. The American welfare state is lopsided.

I did not pay much attention, and since it seemed to prolong itself I began to meditate upon the writer’s life. It is full of tribulation. First he must endure poverty and the world’s indifference; then, having achieved a measure of success, he must submit with a good grace to its hazards. He depends upon a fickle public. He is at the mercy of journalists who want to interview him and photographers who want to take his picture, of editors who harry him for copy and tax gatherers who harry him for income tax, of persons of quality who ask him to lunch and secretaries of institutes who ask him to lecture, of women who want to marry him and women who want to divorce him, of youths who want his autograph, actors who want parts and strangers who want a loan, of gushing ladies who want advice on their matrimonial affairs and earnest young men who want advice on their compositions, of agents, publishers, managers, bores, admirers, critics, and his own conscience. But he has one compensation. Whenever he has anything on his mind, whether it be a harassing reflection, grief at the death of a friend, unrequited love, wounded pride, anger at the treachery of someone to whom he has shown kindness, in short any emotion or any perplexing thought, he has only to put it down in black and white, using it as the theme of a story or the decoration of an essay, to forget all about it. He is the only free man.

A wealthy CEO could justify his or her advantages to a lower paid worker on a factory floor as: "I am not worthier then you nor morally deserving of the privileged position I hold. My generous compensation package is simply an incentive necessary to induce me and others like me, to develop our talents for the benefit of all. It is not your fault that you lack the talent society needs, nor is it my doing that I have such talents in abundance. This is why some of my income is taxed away to help people like you. I do not morally deserve my superior pay and position, but I am entitled to them under fair rules of social cooperation, and remember, you and I would have agreed to these rules had we thought about the matter before we knew who would land on top and whom at the bottom. So please do not resent me, my privileges make you better off than you would otherwise be, the inequality you find galling is for your own good.

Meanwhile, peer-to-peer blockchain networks and cryptocurrencies such as Bitcoin might completely revamp the monetary system, making radical tax reforms inevitable. For example, it might become impossible or irrelevant to calculate and tax incomes in dollars, because most transactions will not involve a clear-cut exchange of national currency, or any currency at all. Governments might therefore need to invent entirely new taxes—perhaps a tax on information (which will be both the most important asset in the economy and the only thing exchanged in numerous transactions). Will the political system manage to deal with the crisis before it runs out of money?

For every taxpayer, no matter who he is, establish a single tax, not too great, which is known in advance and collectable immediately from all payments, deliveries, transactions, and income. And this tribute must not exceed one tenth part, because the holy church has tested this since ancient times and learned from its own rich experience that a man will agree to pay a tenth part of his wealth, but no more, not even out of fear of our Father in Heaven. And this means that there is no point in tempting him.

Another example is the modern political order. Ever since the French Revolution, people throughout the world have gradually come to see both equality and individual freedom as fundamental values. Yet the two values contradict each other. Equality can be ensured only by curtailing the freedoms of those who are better off. Guaranteeing that every individual will be free to do as he wishes inevitably short-changes equality. The entire political history of the world since 1789 can be seen as a series of attempts to reconcile this contradiction. Anyone who has read a novel by Charles Dickens knows that the liberal regimes of nineteenth-century Europe gave priority to individual freedom even if it meant throwing insolvent poor families in prison and giving orphans little choice but to join schools for pickpockets. Anyone who has read a novel by Alexander Solzhenitsyn knows how Communism’s egalitarian ideal produced brutal tyrannies that tried to control every aspect of daily life. Contemporary American politics also revolve around this contradiction. Democrats want a more equitable society, even if it means raising taxes to fund programmes to help the poor, elderly and infirm. But that infringes on the freedom of individuals to spend their money as they wish. Why should the government force me to buy health insurance if I prefer using the money to put my kids through college? Republicans, on the other hand, want to maximise individual freedom, even if it means that the income gap between rich and poor will grow wider and that many Americans will not be able to afford health care. Just as medieval culture did not manage to square chivalry with Christianity, so the modern world fails to square liberty with equality. But this is no defect. Such contradictions are an inseparable part of every human culture. In fact, they are culture’s engines, responsible for the creativity and dynamism of our species. Just

should a legislator, wishing to impose a new tax, choose that which would be theoretically the most just? By no means. In practice the most unjust may be the best for the masses. Should it at the same time be the least obvious, and apparently the least burdensome, it will be the most easily tolerated. It is for this reason that an indirect tax, however exorbitant it be, will always be accepted by the crowd, because, being paid daily in fractions of a farthing on objects of consumption, it will not interfere with the habits of the crowd, and will pass unperceived. Replace it by a proportional tax on wages or income of any other kind, to be paid in a lump sum, and were this new imposition theoretically ten times less burdensome than the other, it would give rise to unanimous protest. This arises from the fact that a sum relatively high, which will appear immense, and will in consequence strike the imagination, has been substituted for the unperceived fractions of a farthing. The new tax would only appear light had it been saved farthing by farthing, but this economic proceeding involves an amount of foresight of which the masses are incapable.

Look, this island is an attempt to re-create a natural environment from the past. To make an isolated world where extinct creatures roam freely. Correct?” “Yes.” “But from my point of view, such an undertaking is impossible. The mathematics are so self-evident that they don’t need to be calculated. It’s rather like my asking you whether, on a billion dollars in income, you had to pay tax. You wouldn’t need to pull out your calculator to check. You’d know tax was owed. And, similarly, I know overwhelmingly that one cannot successfully duplicate nature in this way, or hope to isolate it.

Under Coolidge, the federal debt fell. Under Coolidge, the top income tax rate came down by half, to 25 percent. Under Coolidge, the federal budget was always in surplus. Under Coolidge, unemployment was 5 percent or even 3 percent. Under Coolidge, Americans wired their homes for electricity and bought their first cars or household appliances on credit. Under Coolidge, the economy grew strongly, even as the federal government shrank. Under Coolidge, the rates of patent applications and patents granted increased dramatically. Under Coolidge, there came no federal antilynching law, but lynchings themselves became less frequent and Ku Klux Klan membership dropped by millions. Under Coolidge, a man from a town without a railroad station, Americans moved from the road into the air. Under Coolidge, religious faith found its modern context: the first great White House Christmas tree was lit, an ingenious use for the new technology, electricity. Under Coolidge, the number of local telephone calls went up by a quarter. In Silent Cal’s time, Americans learned to chatter. Under Coolidge, wages rose and interest rates came down so that the poor might borrow more easily. Under Coolidge, the rich came to pay a greater share of the income tax.

According to our estimates, the optimal top tax rate in the developed countries is probably above 80 percent.50 Do not be misled by the apparent precision of this estimate: no mathematical formula or econometric estimate can tell us exactly what tax rate ought to be applied to what level of income. Only collective deliberation and democratic experimentation can do that. What is certain, however, is that our estimates pertain to extremely high levels of income, those observed in the top 1 percent or 0.5 percent of the income hierarchy. The evidence suggests that a rate on the order of 80 percent on incomes over $500,000 or $1 million a year not only would not reduce the growth of the US economy but would in fact distribute the fruits of growth more widely while imposing reasonable limits on economically useless (or even harmful) behavior.

It had personally pained Trump not to be able to give it to him. But if the Republican establishment had not wanted Trump, they had not wanted Christie almost as much. So Christie got the job of leading the transition and the implicit promise of a central job—attorney general or chief of staff. But when he was the federal prosecutor in New Jersey, Christie had sent Jared’s father, Charles Kushner, to jail in 2005. Charlie Kushner, pursued by the feds for an income tax cheat, set up a scheme with a prostitute to blackmail his brother-in-law, who was planning to testify against him. Various accounts, mostly offered by Christie himself, make Jared the vengeful hatchet man in Christie’s aborted Trump administration career. It was a kind of perfect sweet-revenge story: the son of the wronged man (or, in this case—there’s little dispute—the guilty-as-charged man) uses his power over the man who wronged his family. But other accounts offer a subtler and in a way darker picture. Jared Kushner, like sons-in-law everywhere, tiptoes around his father-in-law, carefully displacing as little air as possible: the massive and domineering older man, the reedy and pliant younger one. In the revised death-of-Chris-Christie story, it is not the deferential Jared who strikes back, but—in some sense even more satisfying for the revenge fantasy—Charlie Kushner himself who harshly demands his due. It was his daughter-in-law who held the real influence in the Trump circle, who delivered the blow. Ivanka told her father that Christie’s appointment as chief of staff or to any other high position would be extremely difficult for her and her family, and it would be best that Christie be removed from the Trump orbit altogether.

It should be pointed out, however, that throughout the debate emphasis was placed on raising money only for the proper expense of government.3 None of the advocates of income taxation spoke of expanding the functions of government, and while the opposition mentioned “socialism” it seems doubtful that they had any idea of a New Deal. The American mind of the nineteenth century was incapable of comprehending paternalism, regulation, and control; it was too strongly rooted in the past for that. Even those who advocated the tax method of undermining private property were not aware of what they were doing, and would probably have stopped in their tracks if they could have foreseen the consequences of their proposal. It was not any urgency for Big Government—which they could not even have understood—that prompted them to advocate income taxation. It was simply an urgency to “soak the rich”—the very common sin of envy.

THE AMERICAN brand of socialism known as the New Deal was made possible by the income tax. But with the advent of income taxation, socialism was unavoidable. There have always been, and perhaps always will be, people who are averse to letting other people alone. Recognizing the human inclination to err, they are impelled by their kindness of heart to overcome this imperfection; invariably they come up with a sure-proof plan that needs only political power to become effective. Political power is the essential ingredient of every one of these plans to improve the human. Since all the ills of mankind, they argue, follow from the exercise of free will, it follows that the only cure for these ills is to suppress free will and to compel the individual to behave in all things as per the perfect pattern devised by these improvers. Compulsion means force; there must be a policeman to see that the individual does not follow his own inclinations. But policemen must live. Since they do not produce a thing by which they can live, others must support them. Hence, the planners must have the means of getting at the production of the very people who are to be improved by the policeman. That means taxes, and the more taxes the greater the number of enforcement agents, and therefore the more comprehensive the plan. No plan can be bigger than its bureaucracy. The income tax is the ideal instrument for the planner.

I have no criticism of the basic concept of irrefutable authority. Properly employed, it is the easiest, the surest, and the proper way to resolve conflicts. There is an omnipresent temptation, however, to rely on such authority regardless of its applicability; and I know of no better examples than the scriptures and the Constitution. We find it easy to lapse into the expansive notion that the Constitution, like the gospel, embraces all truth and that it protects and guarantees all that is right, equitable, and just. From that grand premise it is only a short and comfortable leap to the proposition that the Constitution embraces my particular notion of what is right, equitable, and just. The Constitution lends itself to this kind of use because of its breadth. Issues such as foreign aid, fluoridation of water, public versus private education, progressive income tax, to which political party I should belong and which candidate I should support; questions about economic development and environmental quality control; questions about the power of labor unions and the influence of big business in government--all these are issues of great importance. But these questions cannot and ought not to be resolved by simply resorting to irrefutable authority. Neither the Constitution nor the scriptures contain answers to these questions, and under the grand plan of eternal progress it is our responsibility to develop our own skills by working out our own answers through our own thought processes. For example, the Constitution authorizes an income tax, but it neither commands nor forbids an income tax. That is a policy issue on which the Constitution--and the scriptures--are silent. Attempting to resolve our differences of opinion by asserting that if our opponents only understood the scriptures or the Constitution they would see that the whole answer is contained therein only results in foreclosing the careful, rational attention that these issues deserve and require. Resorting to several broad provisions of the Constitution in answer to that kind of question is just plain intellectual laziness. We, of all people, have an obligation to respect the Constitution--to respect it not only for what it is and what it does, but also for what it is not and what it does not do. For in this as in other contexts, improper use of that which is grand can only result in the diminution of its grandeur.

I mean, if you accept the framework that says totalitarian command economies have the right to make these decisions, and if the wage levels and working conditions are fixed facts, then we have to make choices within those assumptions. Then you can make an argument that poor people here ought to lose their jobs to even poorer people somewhere else... because that increases the economic pie, and it's the usual story. Why make those assumptions? There are other ways of dealing with the problem. Take, for example rich people here. Take those like me who are in the top few percent of the income ladder. We could cut back our luxurious lifestyles, pay proper taxes, there are all sorts of things. I'm not even talking about Bill Gates, but people who are reasonably privileged. Instead of imposing the burden on poor people here and saying "well, you poor people have to give up your jobs because even poorer people need them over there," we could say "okay, we rich people will give up some small part of our ludicrous luxury and use it to raise living standards and working conditions elsewhere, and to let them have enough capital to develop their own economy, their own means." Then the issue will not arise. But it's much more convenient to say that poor people here ought to pay the burden under the framework of command economies—totalitarianism. But, if you think it through, it makes sense and almost every social issue you think about—real ones, live ones, ones right on the table—has these properties. We don't have to accept and shouldn't accept the framework of domination of thought and attitude that only allows certain choices to be made... and those choices almost invariably come down to how to put the burden on the poor. That's class warfare. Even by real nice people like us who think it's good to help poor workers, but within a framework of class warfare that maintains privilege and transfers the burden to the poor. It's a matter of raising consciousness among very decent people.

Incidentally, the same logic that would force one to accept the idea of the production of security by private business as economically the best solution to the problem of consumer satisfaction also forces one, so far as moral-ideological positions are concerned, to abandon the political theory of classical liberalism and take the small but nevertheless decisive step (from there) to the theory of libertarianism, or private property anarchism. Classical liberalism, with Ludwig von Mises as its foremost representative in the twentieth century, advocates a social system based on the nonaggression principle. And this is also what libertarianism advocates. But classical liberalism then wants to have this principle enforced by a monopolistic agency (the government, the state)—an organization, that is, which is not exclusively dependent on voluntary, contractual support by the consumers of its respective services, but instead has the right to unilaterally determine its own income, i.e., the taxes to be imposed on consumers in order to do its job in the area of security production. Now, however plausible this might sound, it should be clear that it is inconsistent. Either the principle of nonaggression is valid, in which case the state as a privileged monopolist is immoral, or business built on and around aggression—the use of force and of noncontractual means of acquiring resources—is valid, in which case one must toss out the first theory. It is impossible to sustain both contentions and not to be inconsistent unless, of course, one could provide a principle that is more fundamental than both the nonaggression principle and the states’ right to aggressive violence and from which both, with the respective limitations regarding the domains in which they are valid, can be logically derived. However, liberalism never provided any such principle, nor will it ever be able to do so, since, to argue in favor of anything presupposes one’s right to be free of aggression. Given the fact then that the principle of nonaggression cannot be argumentatively contested as morally valid without implicitly acknowledging its validity, by force of logic one is committed to abandoning liberalism and accepting instead its more radical child: libertarianism, the philosophy of pure capitalism, which demands that the production of security be undertaken by private business too.

Here’s a Reader’s Digest version of my approach. I select mutual funds that have had a good track record of winning for more than five years, preferably for more than ten years. I don’t look at their one-year or three-year track records because I think long term. I spread my retirement, investing evenly across four types of funds. Growth and Income funds get 25 percent of my investment. (They are sometimes called Large Cap or Blue Chip funds.) Growth funds get 25 percent of my investment. (They are sometimes called Mid Cap or Equity funds; an S&P Index fund would also qualify.) International funds get 25 percent of my investment. (They are sometimes called Foreign or Overseas funds.) Aggressive Growth funds get the last 25 percent of my investment. (They are sometimes called Small Cap or Emerging Market funds.) For a full discussion of what mutual funds are and why I use this mix, go to daveramsey.com and visit MyTotalMoneyMakeover.com. The invested 15 percent of your income should take advantage of all the matching and tax advantages available to you. Again, our purpose here is not to teach the detailed differences in every retirement plan out there (see my other materials for that), but let me give you some guidelines on where to invest first. Always start where you have a match. When your company will give you free money, take it. If your 401(k) matches the first 3 percent, the 3 percent you put in will be the first 3 percent of your 15 percent invested. If you don’t have a match, or after you have invested through the match, you should next fund Roth IRAs. The Roth IRA will allow you to invest up to $5,000 per year, per person. There are some limitations as to income and situation, but most people can invest in a Roth IRA. The Roth grows tax-FREE. If you invest $3,000 per year from age thirty-five to age sixty-five, and your mutual funds average 12 percent, you will have $873,000 tax-FREE at age sixty-five. You have invested only $90,000 (30 years x 3,000); the rest is growth, and you pay no taxes. The Roth IRA is a very important tool in virtually anyone’s Total Money Makeover. Start with any match you can get, and then fully fund Roth IRAs. Be sure the total you are putting in is 15 percent of your total household gross income. If not, go back to 401(k)s, 403(b)s, 457s, or SEPPs (for the self-employed), and invest enough so that the total invested is 15 percent of your gross annual pay. Example: Household Income $81,000 Husband $45,000 Wife $36,000 Husband’s 401(k) matches first 3%. 3% of 45,000 ($1,350) goes into the 401(k). Two Roth IRAs are next, totaling $10,000. The goal is 15% of 81,000, which is $12,150. You have $11,350 going in. So you bump the husband’s 401(k) to 5%, making the total invested $12,250.

If government had declined to build racially separate public housing in cities where segregation hadn’t previously taken root, and instead had scattered integrated developments throughout the community, those cities might have developed in a less racially toxic fashion, with fewer desperate ghettos and more diverse suburbs. If the federal government had not urged suburbs to adopt exclusionary zoning laws, white flight would have been minimized because there would have been fewer racially exclusive suburbs to which frightened homeowners could flee. If the government had told developers that they could have FHA guarantees only if the homes they built were open to all, integrated working-class suburbs would likely have matured with both African Americans and whites sharing the benefits. If state courts had not blessed private discrimination by ordering the eviction of African American homeowners in neighborhoods where association rules and restrictive covenants barred their residence, middle-class African Americans would have been able gradually to integrate previously white communities as they developed the financial means to do so. If churches, universities, and hospitals had faced loss of tax-exempt status for their promotion of restrictive covenants, they most likely would have refrained from such activity. If police had arrested, rather than encouraged, leaders of mob violence when African Americans moved into previously white neighborhoods, racial transitions would have been smoother. If state real estate commissions had denied licenses to brokers who claimed an “ethical” obligation to impose segregation, those brokers might have guided the evolution of interracial neighborhoods. If school boards had not placed schools and drawn attendance boundaries to ensure the separation of black and white pupils, families might not have had to relocate to have access to education for their children. If federal and state highway planners had not used urban interstates to demolish African American neighborhoods and force their residents deeper into urban ghettos, black impoverishment would have lessened, and some displaced families might have accumulated the resources to improve their housing and its location. If government had given African Americans the same labor-market rights that other citizens enjoyed, African American working-class families would not have been trapped in lower-income minority communities, from lack of funds to live elsewhere. If the federal government had not exploited the racial boundaries it had created in metropolitan areas, by spending billions on tax breaks for single-family suburban homeowners, while failing to spend adequate funds on transportation networks that could bring African Americans to job opportunities, the inequality on which segregation feeds would have diminished. If federal programs were not, even to this day, reinforcing racial isolation by disproportionately directing low-income African Americans who receive housing assistance into the segregated neighborhoods that government had previously established, we might see many more inclusive communities. Undoing the effects of de jure segregation will be incomparably difficult. To make a start, we will first have to contemplate what we have collectively done and, on behalf of our government, accept responsibility.

It is interesting to note that in nearly all the economics courses it is taught that the income tax is the proper instrument for the regulation of the country’s economy; that private property is not an inalienable right (in fact, there are no inalienable rights); that the economic ills of the country are traceable to the remnants of free enterprise; that the economy of the nation can be sound only when the government manages prices, controls wages, and regulates operations. This was not taught in the colleges before 1913. Is there a relationship between the results of the income tax and the thinking of the professors? There is now a strong movement in this country to bring the publicschool system under federal domination. The movement could not have been thought of before the government had the means for carrying out the idea; that is, before income taxation. The question is, have those who plug for nationalization of the schools come to the idea by independent thought, or have they been influenced by the bureaucrats who see in nationalization a wider opportunity for themselves? We must lean to the latter conclusion, because among the leaders of the movement are many bureaucrats. However, if the movement is successful, if the schools are brought under the watching eye of the federal government, it is a certainty that the curriculum will conform to the ideals of Big Government. The child’s mind will never be exposed to the idea that the individual is the one big thing in the world, that he has rights which come from a higher source than the bureaucracy. Thus, the immunities of property, body and mind have been undermined by the Sixteenth Amendment. The freedoms won by Americans in 1776 were lost in the revolution of 1913.

In her book The Government-Citizen Disconnect, the political scientist Suzanne Mettler reports that 96 percent of American adults have relied on a major government program at some point in their lives. Rich, middle-class, and poor families depend on different kinds of programs, but the average rich and middle-class family draws on the same number of government benefits as the average poor family. Student loans look like they were issued from a bank, but the only reason banks hand out money to eighteen-year-olds with no jobs, no credit, and no collateral is because the federal government guarantees the loans and pays half their interest. Financial advisers at Edward Jones or Prudential can help you sign up for 529 college savings plans, but those plans' generous tax benefits will cost the federal government an estimated $28.5 billion between 2017 and 2026. For most Americans under the age of sixty-five, health insurance appears to come from their jobs, but supporting this arrangement is one of the single largest tax breaks issued by the federal government, one that exempts the cost of employer-sponsored health insurance from taxable incomes. In 2022, this benefit is estimated to have cost the government $316 billion for those under sixty-five. By 2032, its price tag is projected to exceed $6oo billion. Almost half of all Americans receive government-subsidized health benefits through their employers, and over a third are enrolled in government-subsidized retirement benefits. These participation rates, driven primarily by rich and middle-class Americans, far exceed those of even the largest programs directed at low income families, such as food stamps (14 percent of Americans) and the Earned Income Tax Credit (19 percent). Altogether, the United States spent $1.8 trillion on tax breaks in 2021. That amount exceeded total spending on law enforcement, education, housing, healthcare, diplomacy, and everything else that makes up our discretionary budget. Roughly half the benefits of the thirteen largest individual tax breaks accrue to the richest families, those with incomes that put them in the top 20 percent. The top I percent of income earners take home more than all middle-class families and double that of families in the bottom 20 percent. I can't tell you how many times someone has informed me that we should reduce military spending and redirect the savings to the poor. When this suggestion is made in a public venue, it always garners applause. I've met far fewer people who have suggested we boost aid to the poor by reducing tax breaks that mostly benefit the upper class, even though we spend over twice as much on them as on the military and national defense.

The principal reason that districts within states often differ markedly in per-pupil expenditures is that school funding is almost always tied to property taxes, which are in turn a direct function of local wealth. Having school funding depend on local wealth creates a situation in which poor districts must tax themselves far more heavily than wealthy ones, yet still may not be able to generate adequate income. For example, Baltimore City is one of the poorest jurisdictions in Maryland, and the Baltimore City Public Schools have the lowest per-pupil instructional expenses of any of Maryland's 24 districts. Yet Baltimore's property tax rate is twice that of the next highest jurisdiction.(FN2) Before the funding equity decision in New Jersey, the impoverished East Orange district had one of the highest tax rates in the state, but spent only $3,000 per pupil, one of the lowest per-pupil expenditures in the state.(FN3) A similar story could be told in almost any state in the U.S.(FN4) Funding formulas work systematically against children who happen to be located in high-poverty districts, but also reflect idiosyncratic local circumstances. For example, a factory closing can bankrupt a small school district. What sense does it make for children's education to suffer based on local accidents of geography or economics? To my knowledge, the U.S. is the only nation to fund elementary and secondary education based on local wealth. Other developed countries either equalize funding or provide extra funding for individuals or groups felt to need it. In the Netherlands, for example, national funding is provided to all schools based on the number of pupils enrolled, but for every guilder allocated to a middle-class Dutch child, 1.25 guilders are allocated for a lower-class child and 1.9 guilders for a minority child, exactly the opposite of the situation in the U.S. where lower-class and minority children typically receive less than middle-class white children.(FN5) Regional differences in per-pupil costs may exist in other countries, but the situation in which underfunded urban or rural districts exist in close proximity to wealthy suburban districts is probably uniquely American. Of course, even equality in per-pupil costs in no way ensures equality in educational services. Not only do poor districts typically have fewer funds, they also have greater needs.