Once you give the government an inch on the income tax and spending, they take 100 million miles. Republicans are fools if they think a tax increase on millionaires is going to fix anything. In fact, a millionaire’s tax will only embolden the Democrats and grow the government, something the Republicans also like.
When the 16th Amendment was passed, most Americans were not affected by it. The incomes of couples exceeding $4,000, as well as those of single persons earning $3,000 or more, were subject to a one percent federal tax. One percent! This meant that a married couple would not start paying any tax until they made a dollar over $4000.
An income of $4000 in 1913, given the ravages of inflation, would be more than $88,000 in today’s dollar valuation.
In 1913, the top tax rate was 7% on incomes above $500,000 ($10 million in 2007 dollars) and a total of $28.3 million was collected. Less than 1% of the population paid federal income tax at the time. The people who voted for the income tax believed that only the “rich” would be paying the tax. Like today, the people who voted for the income tax voted because other people would be paying it. Not them.
It’s no wonder that liberals are called Progressives. They are willing to settle on very small gains in legislation at the beginning so over time they can increase its effect. This has happened with every legislative act in history. We’ve seen the creation of unconstitutional wealth transfer programs and their continued growth.