Much of the Federal Budget is Unconstitutional

In 1932, the nation and much of the world was mired in a depression.  Overtaxtion created much of the problem in the United States when Democrats attacked those that wanted to invest in the private economy by slapping higher taxes on them.  They punished the people that could have brought us out of the Depression the Democrats had made worst. 

FDR promised to do something for the people that they desired.  He would put people back to work, reshape the economy for the people, help the little guy, and make sure people could retired and live off of an income instead of work all their life and leave nothing for their children.  

The expansion of the government’s power was often opposed by the people because they feared a strong centralized government.  That’s one of the reasons for the Civil War.  The South viewed Washington as a monarch that didn’t care for the people south of the Mason/Dixon Line.  It wasn’t just slavery, though that was a part of the problem.  

A Federal Income Tax was tried during the Civil War to finance the war.  It was abolished after the war for being unconstitutional.  But with a handful of people in major industries and transportation systems becoming “richer than God,” the average citizens resented the wealthy.  They had to be punished for being rich and successful.  

The Federal Income Tax was a way to ”get even” with the rich.  Anyone who earned more than a few thousand dollars would be taxed initially at a low rate.  Anything above $3000 would be taxed at 1%.  Anything above $500,000 would be taxed at 6%. This worked until WW I happened.  The first tax form had a total of four pages with one being instructions on how to fill out the other three.  

During WW I, since a Federal Income Tax was in place, the top rate was raised to 77% between 1917 and 1918.  It was lowered to 25% between 1925 and 1928 which allowed the Roaring 20s to really roar.  More people had more money to spend and invest.  The government didn’t need as much money and could spend time during the afternoon watching Walter Johnson pitch for the Washington Senators instead of argue in the Capitol Building.