no taxes yet

People had good money (there were lovely dinner clubs with live music, they traveled, they gave to their church and charities, schools were decent, etc…. things were humming along…

How did this work?  Where did the money come from?


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34 Responses to NO TAXES

  1. If you’re gonna have a Huge Government, you need Huge Taxes.


  2. Silverfiddle says:

    I think the federal government funded itself through tariffs and taxes on businesses.


  3. geeez2014 says:

    Ed, they sure needed less money with a smaller gov’t….that’s true.

    SF….I don’t know much about tariffs…how’d that work? And how’d companies seemingly do so well then ? Less taxes, I suppose.

    I think of this every time I hear there were no taxes….it amazes me that we were able to run on no federal taxes. Maybe it’s clear to other people, but it’s never been to me.


  4. bunkerville says:

    Then came the Federal Reserve:The value of the dollar remained extremely stable for 150 years, the Fed was created in order to “stabilize the value of the dollar,” and the result has been a 95% devaluation of the dollar in less than 100 years following its creation.

    From 1776 to 1912 (136 years), the value of the dollar, relative to the Consumer Price Index, increased by 11%. A dollar could buy 11% more goods in 1912 than in 1776. Thus, if in 1776, you sat on your savings pile of $1,000,000 for 136 years, it would then be worth $1,110,000 in purchasing power (it will have appreciated in value by 11%). A loaf of bread for Thomas Jefferson cost the same as a loaf of bread for Lincoln 50 years later and again the same for J.P. Morgan 50 years after that. Read more: Dollar Stable until the Federal Reserve


  5. If taxes were not withheld from paychecks and then the taxes had to be coughed up every quarter and every April 15, more people would be outraged by the federal personal income tax. Withholding is not painful enough to wake up people as to just how much their government is extracting from their pockets.


  6. The government didn’t used to be a “charity”. We had churches and non-pofits (non-taxable) for that.


  7. Sparky says:

    It was from tariffs, as per the US Constitution, which must no longer exist. This isn’t America anymore and hasn’t been for over 100 years.


  8. geeez2014 says:

    Tariffs: How much import/export did we DO before 1913??

    Vrag.. this is something people forget and I feel strongly about it…I think it’s a part of why the left’s so eager to kick God out of our country and eager to tax our churches and other non-profits….then everybody will HAVE to go to the government for help….which is really happening now, isn’t it. Great point, thanks.

    AOW: I paid quarterlies when I had my business and they were NOT FUN, you’re right. Then you REALLY see how much tax you’re paying!


  9. geeez2014 says:

    Kid, this is great info, thanks! I copied the basic idea here “Prior to the passage of the 16th Amendment in 1913, the United States government funded its operations mainly through excise taxes, tariffs, customs duties and public land sales. The federal government had relatively few expenses compared to today and did not have as much need to
    large amounts of money.”

    Ed’s comment is confirmed here:
    “Fewer Responsibilities
    The U.S. government was capable of paying for its expenses without an income tax prior to 1913 largely because it had fewer responsibilities. Thomas Eddlem noted in The New American that the federal government’s responsibilities were limited to basic operational matters and did not include such modern expenses as social insurance programs, welfare programs or agricultural subsidies.”


  10. geeez2014 says:

    Bunkerville….what the HECK? EXCELLENT piece on your blog, thanks for going to the trouble of finding and posting it here…I had an education!
    MAN! The cost of MILK has risen a lot in just a few MONTHS 🙂 WOW.


  11. Baysider says:

    They also enacted special taxes. The most humorous? The tax on phone service to pay for … wait for it … the Spanish-American War! Remember that one? They started to step it back IN THE 1970’s! Somehow, I suspect it never ‘paid’ for the war.

    One of the big reasons the bankers backed Teddy Roosevelt as a 3rd party was to remove Taft from the presidency and have Wilson win. They knew he’d play ball with them, and he did. Hence, Federal Reserve, which is neither federal nor a reserve. Biggest marketing smokes screen of the 20th century.

    Bunkerville, I LOVE the stats on the stable dollar. Thanks for that.


  12. Mal says:

    I had seen this questioned previously, Z. No taxes also equaled no debt! This is what our founding fathers had in mind when they left Europe to start a new world yet we somehow found a way to screw things up again. We, the people, were asleep at the wheel while big government evolved and took over. It was great while it lasted.


  13. Mal says:

    Bunkerville, if memory has it right, the Federal Reserve was created (money stolen) late one evening preceding a 3 day holiday. Christmas, I believe it was. Am I correct?


  14. Mal says:

    …………….and never even questioned! WOW! Probably the greatest theft in history!


  15. geeez2014 says:

    Mal: “No taxes also equaled no debt!” Go into detail, please!! ??

    Baysider, those are good stats, aren’t they.
    INTERESTING about Taft/Wilson, etc….brother…let the libs in and EVERY SINGLE TIME WE ARE SCREWED!


  16. Mal says:

    We didn’t borrow money and go into debt. No national debt until we started collecting income taxes, then when we didn’t have enough to spend, Congress borrowed and taxed us even more to pay for it. Thus began a vicious cycle!


  17. geeez2014 says:

    Oh, I get you, Mal….good point. ..thanks.


  18. Mal says:

    Also, as everyone knows, in the 1960’s, Congress just couldn’t resist the temptation of “borrowing” from our Social Security Fund, placing I.O.U’s in its place, thus taking responsibility for its payment. We’ve seen how that worked out when Obama didn’t give us our cost of living increases (COLA) 3 years during his term in office, and I’m sure he’ll skip it again for next year as his parting shot. It is the first time any President has not given us a COLA. Never mind that it’s OUR money, not a government grant. And the years he DID give an increase, it was bare minimum, like 1% – 2%. He made it clear from the beginning he didn’t care about the seniors and took it out on us via social security and Medicare cuts. I wouldn’t have minded so much if he had kept his promise to cut spending and the deficit in half during his 1st term (or even his 2nd, for that matter!), but instead he doubled the debt, so the seniors got the shaft…………ROYALLY!


  19. Bob says:

    If you think there were roads in the USA around 1913 you would be right. The problem is that most were not paved, nor did any of them go anywhere other than local. Plus, there were very few automobiles to use those roads. As the auto became more and more popular, people discovered that paved roads were the way to go. Governments had to get involved to pave those roads, and the money had to come from somewhere.

    We were gulled into believing that gasoline taxes would pay for our roads. Now that there are $Billions paid in fuel taxes each year, the Fed Govt can’t keep its hand off the loot. why are we being asked to pay to repair roads and bridges, especially since we have supposedly been paying for this maintenance from our fuel taxes?

    That’s the good news, and the bad. We need government to make new roads, and to maintain old ones. The bad news is that we are being screwed, again.


  20. geeez2014 says:

    EVERYBODY: The ULTIMATE IRONY was seeing Alan Greenspan address the economic collapse of Venezuela …the rich have left, the socialism is collapsing..SURPRISE? (of course not)
    And there are videos of Venezuelans going through trash for food….which has risen 500x what it was….. wow.

    Bob, I agree with you….this is why I wasn’t 100% against Obama’s “shovel ready” ….sadly, we don’t know where all that money went and he never DID any substantial amount of fixing ANYTHING….the money’s gone, but we’re still being SHOVELED at, aren’t we.
    Yes, we do need government for interstate highways, etc….
    the bad news is we’re being screwed. again.


  21. Mal says:

    All very good points, Bob. We’re continually being raped without benefit of intercourse!


  22. Mal says:

    I know where the money went, Z. Payola to the media!


  23. Kid says:

    Z, the only place that money went was laundered, stolen, and payola as Mal says. I’d say a big chunk went to the moslems too all over the place.


  24. geeez2014 says:

    Kid, think we’ll ever know WHY we’d give money to muslims? Mr. Z used to get so ticked off when he’d see how the Saudis treated us when WE were the ones who financed their first oil drillings…getting them filthy rich.
    As much as Mr. Z knew and like Iraqis, he couldn’t stand Saudis…..and he dealt with a LOT of both many years back.

    There has to be some reason why Black AND White Americans and Europeans are so terribly eager to allow arabs to take us over…..something is going on…this isn’t about being nice to refugees anymore.


  25. Kid says:

    I don’t think they have anything on us Z. We have enough nukes to handle war with those jackals, and if they poll me, I’d tell them, I’d fight them here too. Like the Japanese admiral said right before Pearl Harbor – I’d never go to America to fight, there would be a rifle behind every blade of grass, (and now because of obama, there are 3 rifles behind every blade of grass) But I can’t give you an answer either. I find it rather odd all the presidents go over on kiss their ass visits. Hell if I’d fly over there to hold some saudi king’s hand or have him drop a sword on my shoulder. Quite the opposite.


  26. Kid says:

    Back to taxes though. In a nutshell, I believe the early American government (o maybe its lobbyists?) noticed a lot of families getting rich and they didn’t want that. Can’t have too many people more powerful than government. So they bring in the Federal Reserve to manage an inflation of money scheme to steal people’s money while they slept, and an income tax to keep them lean, and especially an inheritance tax, so that families wouldn’t become wealthy through building it up over generations.

    Though soon after 1913, America needed a well financed Military, and as someone said, a major improvement to interstate travel – which finally came about under Eisenhower. These really are the only two mandates of federal government and we could afford them easily, but as everyone knows, we have an alphabet soup of federal departments in which to launder money through so ‘They” can steal it. 10 Trillion in the last 8 years of obama.

    So, what are you having for dinner tonight?


  27. Geezer840 says:

    Lest we forget. There were roads in America from the very founding of our country. There were toll roads that were largely funded privately. The early commercial transport was primarily via canals and rivers. The canals were privately built, many were toll canals and others were funded by states issuing bonds. There were no Federal canals. The transcontinental transportation reached the west via the transcontinental railroad which was privately funded.
    In my great state of Washington roads are actually constructed by the Washington Department of Transportation. They have a fantastic record; unfortunately not a good one. But with an unlimited source of funds you don’t have to be perfect, or even mediocre.
    Bottom line is that the Federal Government (actually most any level of government) does a lousy job with everything it undertakes and has undertaken our county.
    How are you spending your $2,600 savings on insurance since the Federal Government took that over?


  28. Kid says:

    Federal government has no positive accomplishments. Anyone know of one?


  29. Christopher aka I.H.S. says:

    Hi, Z!

    So, is it safe to say, we are too far gone to go back to a time before taxes?


  30. geeez2014 says:

    CHRISTOPHER! my GOSH! How ARE you? Wonderful to see you here….if you still have my email address, please write and let me know how the family is and how you’re doing…church, etc??

    I have the same question, CHristopher: CAN WE GO BACK TO THAT, PLEASE!!???


  31. Baysider says:

    Don’t forget, in THOSE days people generally bought and paid for their homes in 5 years. And they didn’t spend 20 years paying off college debts until … the federal government stepped in and drove the price of it out of sight.


  32. Mal says:

    Hey Geezer……Your point about what a lousy job the Government does with everything it touches reminds me of a few years back they took over (foreclosed?) on a brothel in Pahrump, a small town in the desert not far from Vegas, and tried to run it, but went broke. Hell, they can’t even run a cat house without going broke!


  33. Mal says:

    Oh! Yes, brothels are legal there, natch! I mean, would our government do anything illegal???


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