Soak the Poor

Some very interesting thoughts about Income tax as the root of all evil by Frank Chodorov:

The class-war doctrine is most vicious not in that it sets man against man, producer against producer, but in that it diverts the attention of the contestants from their common enemy, the State. Men live by production, but the State lives by appropriation. While the haves and the have-nots struggle over the division of existing wealth, it is the business of the State to improve itself at the expense of both; it picks up the marbles while the boys are fighting. That has been the story of men in organized society since the beginning. That this lesson of history should have escaped the reformers of the 19th century, when the habit of freedom was still strong in America, can be easily understood; what is not easily explained is the acceptance of the doctrine of benevolent government in our day, when all the evidence to the contrary is before our eyes.

…This is all in line with the ability-to-pay doctrine. The poor, simply because there are more of them, have more ability to pay than the rich. The national pay envelope contains more money than the combined treasuries of all the corporations of the country. The government could not for long overlook this rich mine. Political considerations however, made the tapping of the pay envelope difficult. The wage earners have votes, many votes, and in order not to alienate these votes, it was necessary to devise some means for making the taxation of their incomes palatable. They had to be lulled into acceptance of “soak the poor.”

The drug that was concocted for this purpose was “social security.” The worker was told that he was not paying an income tax when his pay envelope was opened and robbed; he was simply making a “contribution” to “insurance” against the inevitable disabilities of old age. He would get it all back, when he could no longer work, and with a profit.

We have exactly the same situation here where the poor and middle classes are “soaked” with no escape. And again it the elfare state that is the drug that this country has become addicted to and the excuse to continue to soak the workers.

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  • Its da truth

    This is just unintelligent waffle with no fact, specific e.g’s etc, just playing to a captured audience. Boring. The social policies that were brought about were by caring socially minded people in different times. They were not ‘concocted’ by evil beaurocrats to ensure control. What a load of crap.  What did I expect reading your blubber.

    • Anonymous

      Fuck off then, use you brains and stop looking at this blog.

    • Thorn

      Don’t you mean a captive audience? And in the context, audience may not be the appropriate collective noun. And these are facts, not waffle. See, you have learned something already.

      BTW, socialism was not ‘concocted’ by caring people as you believe. Google the term ‘lumpen proletariat’ to discover what socialists really think of your class.

    • Fuck off back to your mate Henk.

  • Ploughman

    Income tax was a temporary tax levied to finance the Napoleonic Wars.    It was then removed by a Liberal government and re-instituted, forever, by a Conservative government!   But the worst trick was the introduction of PAYE which enabled governments to levy as much as they liked without the taxpayer noticing.  If you want to control government then the best way is to abolish PAYE and make the annual income tax levy be paid on one date each year so that taxpayers could realise out how much the government sucks off them.  The screams would fill the heavens and governments would be forced to be more conservative with their expenditure.
    Why would this scheme be good?  Because wealth is created by private sector, or more specifically by free transactions between willing buyers and willing sellers who, in the transaction, both gain greater wealth than they had originally.   Governments (generally) destroy wealth – they appropriate in attempts to satisfy particular their own goals or to buy votes.  So, the more money circulating in the transactional (private) sector the wealthier we are.  
    Regarding welfare, we would be far, far better off saving or insuring our own welfare rather than relying on an inefficient and often ignorant government.  Do the maths and see.  If you earn the average wage and invest 2/3 rds of your present tax in a sound investment you would have about $5m saved by 65 and have an annual interest income of about $440,000. 

  • John the Contrarian

    The author of that article confuses billions with trillions when assessing fund dimensions. They also underestimate the shortfall: US Medicare alone has over $40T of unfunded liabilities while the US Social Security fund is merrily depleting and will be out of $ by 2035. This debt hole is a Ponzi scheme that cannot be allowed to collapse – e.g. millions of elderly Americans are totally reliant on Medicare for their healthcare- so the eventual intervention will make the recent financial bailouts that stressed the US financial system, look like chump change.
    How did it happen? Simple: US voters punished politicians who tried to balance the books and rewarded those who promised to cut taxes.
    Consider the Aussie National Super scheme as an example of responsible use of compulsory contributions. Doom and gloom was predicted by the usual parties when it was instituted, but now it is a colossal success that helps with a booming Aussie stock market, funds Australian predation of good NZ businesses and soon will have enough to fund all predictable future Aussie needs, forever. The lesson? don’t just put in enough to cover current needs, deliver a surplus that can grow and cover future needs as well. IOW put in more than you take out- which is true whether it be taxes or compulsory contributions under some other label. All the other posturing is good fun but doesn’t actually solve much.