Steve King: Secret income is ‘part of freedom’ (via Raw Story )
Rep. Steve King (R-IA) on Wednesday told a tea party rally that the Internal Revenue Service should be abolished because keeping income secret from the federal government was “part of freedom.” “You know, the IRS audited me one too many years in a row,” King explained at a Tea Party Patriots…
Speaking of taxes and the intrusiveness and invasive nature of the IRS, I have to acknowledge that it wasn't always that way. This year is the 100th anniversary of the income tax and the establishment of the Federal Reserve and I hold in my hand a reproduction of the Form 1040 from 1913 and I am rather dumb struck with the brief, simple and affordable cost of complying with it. Have a look....
ReplyDeleteLine 1. Gross Income
Line 2. General Deductions
Line 3. Net Income
Line 4. Dividends and net earnings received or accrued of corporations. etc, subject to like tax.
Line 5. Amount of income on which the normal tax has been deducted and withheld at the source.
Line 6. Specific exemption of $3,000 or $4,000, as the case may be.
Total deductions and exemptions. (Items 4,5, & 6)
Line 7. Taxable Income on which the normal tax of 1 per cent is to be calculated.....
Line 8. When the net income shown on line 3 exceeds $20,000, the additional tax thereon must be calculated as per schedule below:
1 percent on amount over $20,000 and not exceeding $50,000....
2 percent on amount over $50,000 and not exceeding $75,000....
3 percent on amount over $75,000 and not exceeding $100,000....
4 percent on amount over $100,000 and not exceeding $250,000....
5 percent on amount over $250,000 and not exceeding and not exceeding $500,000
6 percent on amount over $500,000....
Total additional or super tax................
Total normal tax (1 percent of amount entered on line 7)..................
Total tax liability.........
Postscript......
US unemployment rate in 1913 at 6.6%
http://www.nber.org/chapters/c2644.pdf
US inflation rate in 1914 at 1.3%
http://www.minneapolisfed.org/community_education/teacher/calc/hist1913.cfm?