History Lesson

Our federal income tax system was first suggested in 1912 and promoted as a "voluntary" system.

When Congress voted to accept the voluntary tax system, it was argued that a 1.5% cap should be placed on what the government could raise in income taxes. That resolution was quickly and soundly defeated because Americans would never allow the feds to take such large sums from their wages.

The feds and their state level counterparts control much more of our wages. They take 6.2% for Social Security (our employers match this amount), 1.45% for Medicare (again, employer matched), 15%-36% federal income tax (based on the number of exemptions we claim on the W4 forms we provide our employers), and state rates (0%-12%).

The extremes leave some earners with less than 1/2 of their wages. The self-employed cover the match of Social Security and Medicare on top of that.

And to think we volunteered for this system.

'til later