With all the Superbowl hype today, few if any Americans will take note of this monetary milestone:
On February 3rd, 1913, one of the two most historic events in US history took place: the ratification of the 16th amendment, which established Congress’ right to impose a Federal income tax on Americans, and overturned Article I, Section 9 of the US Constitution which explicitly prohibited a general income tax. The amendment was brief and to the point, and read as follows: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
And with that, the US Federal Income Tax was born and has been with us for precisely 100 years.
As has the effects of giving the government the ability to tap power directly from every American wallet…
With the creation of the Federal Reserve in December that same year (which facilitated enormous deficit spending), America started a century of fiscal rot from within. A century later, that rot is becoming too apparent to ignore.