Did you know that the middle class didn’t always pay taxes?
It all started in December, 1941.
That’s when Japan bombed Pearl Harbor, killing 2400 Americans and forcing Roosevelt to commit the US to joining the Allied forces in WWII.
As you know, fighting a war takes a lot of money.
And back then, the world was still on the gold standard, so we couldn’t simply ‘print’ money to fund the war efforts.
But these were desperate times. And governments are notoriously uncreative. So, they did what governments do – they increased taxes.
At the time, only the rich paid income taxes. But now, with Congress passing the Revenue Act, the middle class would have to pay too.
Time Magazine called the Revenue Act …
“The biggest piece of machinery ever designed to separate dollars from citizens.”
I don’t think even Time knew how right they were.
As the war machine expanded, so did the government. And bloated governments tend to stay bloated.
Which is why, when the war ended … the new tax regime lived on – effectively turned the middle class into working slaves.
Your wallet has never been the same. If you paid all of your tax dollars to the government upfront, you’d have to work until the end of May before you started paying yourself. That’s how bad taxes are.
And things are about to get far worse.
The national debt is approaching $28 million. And our debt to GDP ratio is nearly 130%.
America is bleeding money.
So, once again, they’re coming for yours.
This time, they’re using the pandemic and the Wall Street Bets / GameStop short squeeze as an excuse to do it.
I guess the little guys made too much money.
Now, the legislators want a piece of the action.
Just this past Sunday, a Whitehouse spokesperson said the idea of a financial transaction tax is worth studying.
This tax would mean that every time you make a trade – whether you make money or lose money – you’d have to pay Uncle Sam for the ‘privilege.’
The idea is gaining support.
House Financial Services Chairwoman, Maxine Waters, publicly stated she’s looking at it. And in 2019, Biden said he’d support such a tax.
And, as is typical, they say they’re doing it to save the little guy. They’re worried about us getting caught up in things like short squeezes. And they say this tax will protect us.
