100 Years ago this month, President Woodrow Wilson signed the 16th Amendment and the income tax was born. Now we have an army of IRS agents enforcing 73,954 pages of federal tax rules. Liberals love taxes to penalize the evil rich. As Chris Edwards from Cato points out, “The key problem is that liberals have favored an expansive definition of income that is anti-growth and punishing to savers and investors. The liberal ‘Haig-Simons’ income has been the starting point for our income tax, and it includes all labor income, capital income, and even various non-cash items such as the implicit rent from owning a home. It also includes the accrued value of all capital gains, whether the gains are realized or not.” Edwards concludes, “The Jeffersonian goal of abolishing internal taxes seems distant, but we can make the federal tax system much simpler, more efficient, and respectful of limited government. After a century, it’s time to scrap the income tax and replace it with a consumption-based flat tax.”
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E.J. Smith is Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at email@example.com. Sign up here to receive all the best content from Richardcyoung.com each week.