History of the Income Tax

[Excerpt from Neal Boortz's soon-to-be-released book "The FairTax Saying Goodbye to the IRS and the Federal Income Tax", soon to be published by Regan Books.]


"Now here's where things get really depressing. After the idea of an income tax was declared to be unconstitutional the politicians in Washington chose sides and drew their battle lines. On the one side we had Democrats who were eager to spend the money that would come from an income tax. The Democrats included a platform calling for such a constitutional amendment permitting the income tax in both their 1896 and 1908 platforms. Republicans were opposed.
Those who favored the income tax scheme met with considerable success in capturing public sentiment with promises that the tax would "soak the rich" and would leave the vast majority of Americans alone. Wealth envy was every bit as alive and well in the early 1900s as it is in the early 2000s.

The history timeline now brings us to Texas Senator Joseph Bailey, a conservative Democrat, who cooked up a scheme to humiliate congressional Republicans. Bailey introduced a bill calling for an income tax. Even though Bailey himself was opposed to an income tax, he thought that the Republicans would rush in to kill this legislation. This would further the image that Democrats were trying to cultivate of Republicans as hostile to the poor and concerned only about protecting the wealthy. Wouldn't you know it; things didn't turn out as Bailey had planned. Liberal Republicans, backed by Teddy Roosevelt, came out in support of the bill. Passage seemed all but certain.

Conservative Republicans needed a way to derail the Bailey Bill and the growing threat of an income tax. In one of the worst examples of legislative play-calling in the history of our Republic, Republicans came up with the brilliant idea of announcing that they would support the idea of an income tax, but only if that income tax came about as the result of an amendment to our constitution. This group of conservative Republicans felt that while there might be some chance the proposed amendment would actually make it through the House and the Senate, there was just no way in the world that the legislatures of three-fourths of the states would vote for ratification and make it a part of our Constitution.

Oops.

Sail through the House and the Senate the amendment did. The vote in the Senate was 77-0 and the House approved it by 318-14. It was off to the states for ratification. Conservative Republicans were certain that the effort was doomed. They were wrong.

Democrats launched a massive effort to convince the people that any income tax would only be directed at the wealthy, and that ordinary Americans would be left unscathed. Conservative legislatures in the West and the South convinced their constituents that the adoption of the income tax would have little effect on them, since incomes high enough to be taxed were rare in these areas. The people, thus anesthetized, raised little objection and the 16th Amendment was ratified on February 12, 1913 . This date should be added to December 7, 1941 and September 11, 2001 as dates in American history that shall forever live in infamy."

The FairTax (c) 2005 John Linder & Neal Boortz