| 00:00:02 |
HOST, -
HE IS WRITTEN A BOOK. OUR TOPIC IS THE HISTORY OF THE INCOME TAX. WHEN WAS THE INCOME TAX FIRST INTRODUCED AND WHY? GUEST: THE FIRST INCOME
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| 00:00:16 |
GUEST, -
TAX WAS DURING THE CIVIL WAR, AND THAT TAX LAPSED IN THE EARLY 1870'S. THE PERSONAL INCOME TAX WAS REINTRODUCED IN 1913, FOLLOWING AN AMENDMENT TO THE...
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| 00:00:33 |
HOST, -
THE CIRCUMSTANCES IN THAT TIME THAT THE INCOME TAX WAS INTRODUCED? GUEST: AFTER THE CIVIL WAR,
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| 00:00:41 |
GUEST, -
THE GOVERNMENT'S REVENUE CAME OVERWHELMINGLY FROM THE TARIFF, WHICH WAS VERY HIGH IN ORDER TO PROTECT AMERICAN INDUSTRY FROM LARGELY BRITISH COMPETITION,...
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| 00:03:25 |
HOST, -
WOULD GROW WILSOWOODROW WILSON? GUEST: YES, AND THE
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| 00:03:36 |
GUEST, -
DEMOCRATIC CONGRESS. IT APPLIED MOSTLY TO THE UPPER MIDDLE CLASS AND ABOVE. I BELIEVE IT WAS A 1 PERCENT TAX ON INCOMES ABOVE 3000, WHICH WAS A VERY...
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| 00:03:57 |
HOST, -
BACK TO THE RULING BY THE SUPREME COURT, WHAT DOES THE CONSTITUTION SAY THAT THE COURT DECIDED TO RULE AGAINST PERSONAL INCOME TAX? GUEST: THE CONSTITUTION
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| 00:04:09 |
GUEST, -
SAYS ANY DIRECT TAX MUST BE APPORTIONED AMONG THE STATES ACCORDING TO POPULATION, WHICH IS OBVIOUSLY IMPOSSIBLE WITH AN INCOME TAX. THE QUESTION WAS...
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| 00:05:01 |
HOST, -
WAS AMENDED, WHAT LANGUAGE DID THEY USE TO GET PAST WHAT THE SUPREME COURT FELT WAS THE DIRECT TAX? >> THE AMENDMENT SIMPLY
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| 00:05:13 |
Unidentified Speaker, -
ALLOWS A PERSONAL INCOME TAX WITHOUT REGARDS TO THE STATE. HOST: YOU ALSO
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| 00:05:21 |
HOST, -
MENTIONED THE CORPORATE TAX. WAS THAT SUPPOSED TO BE PERMANENT? GUEST: TAFT SUCCEEDED
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| 00:05:29 |
GUEST, -
TO BE A TEMPORARY STOPGAP UNTIL THE PERSONAL INCOME TAX WAS ENACTED. THEN THEY KEPT THE CORPORATE TAX, AND LET IT AS IT WAS. THAT HAS BEEN A SOURCE OF...
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| 00:06:01 |
Unidentified Speaker, -
RECENTLY OF THE WALL STREET JOURNAL, OR -- SHORT HISTORY OF THE TAX. IN THE PEACE TO TALK ABOUT HAVING A PERSONAL INCOME TAX AND CORPORATE TAX, SAYING...
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| 00:06:19 |
GUEST, -
TO GAME THIS IS DONE BY SWITCHING BETWEEN THE TAXES. FOR INSTANCE, IN 1917, THE TAX ON HIGH INCOMES WENT THROUGH THE ROOF. IT WENT UP TO 77%, AND THE...
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| 00:07:34 |
HOST, -
LAW PAGES, IN 2011 THOSE TAX LAW PAGES, 72,536. IN 1913 IT WAS ONLY 400 PAGES. THE IRS TAX CODE IS CURRENTLY THREE VOLUMES FOR A TOTAL OF 4333 PAGES....
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| 00:08:27 |
GUEST, -
MARGINAL RATE HAS GONE UP AND DOWN. IT WENT UP IN WORLD WAR I, AS YOU WOULD EXPECT. IT WAS CUT SEVERELY IN THE 1920'S AND ROSE AGAIN IN THE 1930'S....
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| 00:10:19 |
HOST, -
IS THE FIRST CALLLER ON THIS, A REPUBLICAN IN MIDDLETOWN, NEW YORK. YOU WERE ON THE AIR. CALLER: I WAS
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| 00:10:28 |
CALLER, -
WONDERING IF YOU COULD TELL US IF YOU HAVE EVER RIDDEN -- READ THE BOOK, THE ONE THAT RON PAUL PUSHES A LOT? I BELIEVE THE FEDERAL RESERVE AND THE INCOME...
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| 00:11:05 |
HOST, -
THE FEDERAL RESERVE. TO COINCIDE WITH THE TAX? GUEST-- DID IT COINCIDE WITH THE TAX? GUEST: YES, IT DID, BUT
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| 00:11:18 |
GUEST, -
THAT WAS COINCIDENTAL. THE ONLY WITH THE PANIC WAS AVOIDED WAS IT WAS J.P. MORGAN AS THE CENTRAL BANK OF THE UNITED STATES, AND THERE HAS BEEN A LONG...
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| 00:12:20 |
HOST, -
A TWEET FROM JOE -- GUEST: WELL,
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| 00:12:29 |
GUEST, -
THE PEOPLE DID NOT VOTE FOR THE INCOME TAX. IT WAS ENACTED BY CONGRESS. CERTAINLY THE PUBLIC PRESSURE WAS THAT THE RICH WERE NOT PAYING THEIR FAIR SHARE....
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| 00:13:02 |
HOST, -
THE GOVERNMENT AT THE TIME BE -- ABLE TO BE IN THE BLACK WITH HAVING A TERROR ATTACKS AND NOT HAVING AN INCOME TAX? GUEST:
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| 00:13:09 |
GUEST, -
YES. THROUGHOUT THE LATE 19TH CENTURY AND UP UNTIL WORLD WAR I, THE GOVERNMENT RAN CONSISTENT LARGE SURPLUSES. IN 1884 GOVERNMENT REVENUES EXCEEDED OUTLAYS...
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| 00:13:52 |
HOST, -
BARBARA IS UP NEXT. WE'RE TALKING ABOUT THE HISTORY OF INCOME TAX. CALLER: MY QUESTION
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| 00:13:59 |
CALLER, -
IS I DO MY TAX -- I DO MY INCOME TAX EVERY YEAR, AND AS A SINGLE INDIVIDUAL, I PAY MORE THAN A FAMILY RATE. SINCE THERE IS SO MANY SINGLE PEOPLE, COULD...
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| 00:14:41 |
GUEST, -
WHY WE HAVE DIFFERENT RATES FOR SINGLE PEOPLE AND VERY PEOPLE HAS BEEN -- CONGRESS HAS USED THE INCOME TAX AS A MEANS OF POLITICAL GAMING IN ORDER TO...
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| 00:15:48 |
HOST, -
IS ANOTHER TREAT FOR YOU. -- TWEET FOR YOU. GUEST:
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| 00:15:55 |
GUEST, -
PEOPLE HAVE SAID THE PROHIBITION, WHICH WAS GATHERING STRENGTH IN 1913, WHICH WAS THE GOVERNMENT WOULD BE LOSING THE EXERCISE -- EXCISE TAX ON LIQUOR,...
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| 00:16:39 |
HOST, -
JOHN COME REPUBLICAN IN FLORIDA. -- JOHN, REPUBLICAN AND FLORIDA. CALLER: I
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| 00:16:49 |
CALLER, -
THINK PEOPLE HAVE BOUGHT INTO THE LIES THAT TAXES ARE THERE TO MAKE RICH PEOPLE PAY THEIR FAIR SHARE. PEOPLE LIKE ROCKEFELLER AND MORGAN, THESE GUYS DID...
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| 00:17:46 |
GUEST, -
WAYS THEY DO. CERTAINLY LARGE COMPANIES CAN DEAL WITH WHAT OF THE SITUATION IS BETTER THAN SMALL COMPANIES, AND THEY HAVE OFTEN USED THAT NOT JUST WITH...
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| 00:18:33 |
HOST, -
TO ADD TO THE CONVERSATION -- THIS COMMENT TO ADD TO THE CONVERSATION -- JEAN, A DEMOCRAT A CALLLER FROM TEXAS IS NEXT. AND CALLER: I HAVE A SOLUTION...
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| 00:19:27 |
HOST, -
UP THE MORTGAGE INTEREST DEDUCTION. WHAT IS THE HISTORY BEHIND TAX CREDITS? WHAT IS THE HISTORY TO THE CODE? GUEST: THEY
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| 00:19:37 |
GUEST, -
WERE INTRODUCED MAINLY IN THE 1930'S, AND NEVER SENDS POLITICIANS HAVE BEEN USING THE TAX SYSTEM AS A MEANS OF WHAT THEY CALLED TAX EXPENDITURES, RATHER...
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| 00:20:46 |
HOST, -
RESEARCHED WHETHER OR NOT THE MORTGAGE INTEREST DEDUCTION, THE TAX EXPENDITURES, HAVE THE DESIRED OUTCOME. THAT IS MORE PEOPLE BUYING HOMES? GUEST: HOME
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| 00:20:59 |
GUEST, -
OWNERSHIP HAS RISEN CONSIDERABLY SINCE OF THE HOME OWNERSHIP PUSH BEGAN IN THE 1930'S? =. IN THE 1930'S ONLY 10% OWN THEIR OWN HOMES. IN THE EARLY 2000'S...
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| 00:21:26 |
HOST, -
AN INDEPENDENT IN MICHIGAN. CALLER: THE TAXATION
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| 00:21:32 |
CALLER, -
ACT OF 1920 WAS BY THE FEDERAL SUPREME COURT. I WAS UNDER THE ASSERTION THAT THE KEY WORDS WERE VOLUNTARY OR TEMPORARY. OUR POLITICIANS HAVE NEVER OFFERED...
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| 00:22:38 |
GUEST, -
ARE BURDENSOME, REGARDLESS OF HOW SMALL THEY ARE. IN 1898 WE WENT TO WAR WITH SPAIN, AND WE PUT ON A SPECIAL TAX TO FUND THE WAR ON LONG BEST DISTANCE...
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| 00:23:33 |
HOST, -
IN SEPTEMBER YOU TALK ABOUT CONSEQUENCES OF THE CORPORATE INCOME TAX RATE AND THE PERSONAL INCOME TAX RATE. YOU TALK ABOUT THE FIRST ONE. THE SECOND...
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| 00:24:00 |
GUEST, -
ONLY 17% OF HIS TAXABLE INCOME, WHERE AS HIS SECRETARY, WHO I IMAGINE IS A WELL-BID SECRETARY, WAS PAYING 35% SEN. THAT SOUNDS CERTAINLY UNFAIR. WHY SHOULD...
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| 00:25:30 |
HOST, -
MINNESOTA IS NEXT. QUESTION OR COMMENT. CALLER: I HAVE A
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| 00:25:37 |
CALLER, -
COMMENT IN A LITTLE BIT OF A QUESTION IN IT. HE GOES ON TO SAY THE TAXATION, NO MATTER HOW YOU LOOK AT IT, IT IS ON LABOUR, IT IS A PERCENTAGE OF SLAVERY....
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| 00:26:24 |
GUEST, -
HAVE NOT THE FAINTEST IDEA. THAT IS A TECHNICALITY. I AM NOT A TAX ACCOUNTANT OR TAX LAWYER. I AM AFRAID I HAVE NOT ANY IDEA WHAT THE ANSWER TO YOUR...
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| 00:26:47 |
GUEST, -
100% CORRECT. THERE ARE 60,000 LOBBYISTS IN WASHINGTON WHO LOBBY ON TAXES ALONE. THAT IS WHY THE SIMPLER THE TAX FORM, THE SIMPLER THE TAX CODE, THE LESS...
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| 00:27:18 |
HOST, -
THE HISTORY OF THE FLAT TAX? GUEST: STEVE FORBES IS
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| 00:27:22 |
GUEST, -
THE MAN TO PUT IT ON THE MAP WHEN HE RAN FOR PRESIDENT IN 1996. THIS RADICALLY SIMPLIFY IS THE TAX CODE OUT BY HAVING -- INSTEAD OF HAVING A PROGRESS...
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| 00:28:53 |
HOST, -
PERRY'S ANNOUNCEMENT ON HIS TAX PLAN. GO TO C-SPAN.ORG FOR MORE INFORMATION. HERE IS ANOTHER TWEET -- LANDFALLS, NEW YORK. DAN, INDEPENDENT CALLLER...
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| 00:29:23 |
CALLER, -
DEFINED IT AS A GAIN ON CORPORATE ACTIVITIES. WHY ARE CITIZENS BEING SENT TO JAIL FOR NOT PAYING IN INCOME TAX? GUEST: BECAUSE
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| 00:29:32 |
GUEST, -
THE LAW REQUIRES THEM TO PAY THE TAX. IT IS NOT AS CORPORATIONS. THERE IS A PERSONAL INCOME TAX. INCOME -- AND MIGHT BE DIFFICULT TO DEFINE IN A LEGAL...
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| 00:30:00 |
CALLER, -
YOU COULD TELL US WHAT THIS COUNTRY WOULD BE LIFE IF NO ONE PAID TAXES. IT REALLY GETS ME THAT THEY DRINK THE WATER COMING USE EVERYTHING THAT IS OUT...
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| 00:30:20 |
GUEST, -
PAID TAXES, THIS COUNTRY WILL NOT BE A PLEASANT PLACE TO LIVE IN. POLICE AND FIRE IN THE UNITED STATES NAVY ARE NICE TO HAVE AROUND-- AND THE UNITED...
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| 00:31:16 |
CALLER, -
IS, IS IT TRUE WITHHOLDING AT THE BEGINNING OF WORLD WAR II THAT THE CONGRESS INTENDED TO STOP WITHHOLDING TAXES AT THE END OF THE WAR, BUT THAT WHEN...
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| 00:33:00 |
GUEST, -
IMPACTS THE RICH, BECAUSE THERE WAS ONLY ONE OF MARGINAL RATE. THE IDEA THAT THE RICH SHOULD PAY A HIGHER MARGINAL RATE GOES BACK ALL THE WAY TO CARL...
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| 00:34:17 |
HOST, -
TALKING ABOUT THE HISTORY OF THE INCOME TAX WITH JOHN STEELE GORDON, AUTHOR AND FINANCIAL HISTORIAN. HE HAS WRITTEN MANY BOOKS. THIS TWEET -- GUEST:...
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| 00:34:38 |
GUEST, -
IS THAT THE EVIDENCE -- DIVIDENDS COME OUT AFTER TAX CORPORATIONS. THEY SEND A PORTION OF THE REMAINING PROFIT TO STOCKHOLDERS. THAT MONEY HAS ALREADY...
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| 00:36:05 |
HOST, -
MARY, AN INDEPENDENT IN NEW YORK. CALLER: MY COMMENT
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| 00:36:11 |
CALLER, -
WAS THE ONE TO GET RID OF THE DEFICIT AND HOW MUCH WE ARE IN DEBT, AND YET THE IRS, I HEARD ON THE NEWS A COUPLE OF MONTHS AGO, THE IRS GAVE ALL OF THE...
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| 00:36:51 |
HOST, -
ON ALL NEXT IN TENNESSEE. -- ARNOLD NEXT IN TENNESSEE. CALLER: I WOULD LIKE
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| 00:37:00 |
CALLER, -
TO INVITE YOU TO GO TO MY WEB SITE AND READ A BOOK I WROTE. THE WEB SITE IS LOVE GODISLOVE.ORG. IT IS A TRUE STORY AND YOU MIGHT FIND IT INTERESTING....
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| 00:37:42 |
GUEST, -
IT HAS TO BE RATIFIED BY THREE-QUARTERS OF THE STATES IN ORDER TO BE RATIFIED AS AN AMENDMENT. THEY KEEP A VERY CAREFUL RECORDS OF THIS, AND THAT HAS...
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| 00:38:22 |
GUEST, -
RAISING TARIFFS IN 1930 WITH THE SMOOT HOLLY TARIFF. TODAY WE HAVE A GLOBAL ECONOMY. YOU KNOW, I DID NOT LOOK THIS MORNING WHEN I GOT DRESSED, BUT I...
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| 00:38:58 |
HOST, -
NEW MEXICO. DON, INDEPENDENT CALLLER. CALLER: I WOULD
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| 00:39:03 |
CALLER, -
LIKE TO GO BACK TO THE CAPITAL GAINS AND DIVIDENDS ISSUE. REAGAN'S FORMER BUDGET DIRECTOR HAS ARGUED THAT CAPITAL GAINS AND DIVIDENDS BE TAXED AS OUR...
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| 00:40:03 |
GUEST, -
THE FIGURE, IT IS AROUND 26% IS THE AVERAGE CORPORATION EFFECTIVE TAX RATE. THERE ARE CORPORATIONS LIKE GENERAL ELECTRIC THAT FAMOUSLY PAY NO TAXES LAST...
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| 00:41:10 |
HOST, -
BRYAN, DEMOCRAT A CALLLER IN CHICAGO. CALLER: IN THE
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| 00:41:16 |
CALLER, -
INTEREST OF HISTORICAL ACCURACY, YOU SAID EARLY ON THE DIRECT TAX, AS MENTIONED IN ARTICLE ONE, SECTION 2, CLAUSE 3, WAS NEVER DID FIND IN ONE OF THE...
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| 00:42:25 |
GUEST, -
COURSE IS THE SLAVE TRADE, WHICH WAS PUT ON -- THE POLITICAL COMPROMISE THAT HAVE TO BE MADE. ONE OF THE DEALS WAS THE SLAVE TRADE WOULD NOT BE ABOLISHED...
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| 00:43:01 |
HOST, -
FOR TALKING TO OUR VIEWERS ABOUT THE HISTORY OF THE INCOME TAX. THAT DOESN'T FOR TODAY'S " WASHINGTON JOURNAL." THE CHAIR WILL ALTERNATE RECOGNITION BETWEEN...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.