2004 is just around the corner. its time to start thinking about filing taxes.

Here is an interesting article titled History of the Income Tax in the United States.

choice quotes "In 1817, however, Congress did away with all internal taxes, relying on tariffs on imported goods to provide sufficient funds for running the government."

"In 1862, in order to support the Civil War effort, Congress enacted the nation's first income tax law. It was a forerunner of our modern income tax in that it was based on the principles of graduated, or progressive, taxation and of withholding income at the source."

In 1862 we started to use income as a source of taxation. In 1868 it was again abolished. This line is great "In the latter year(1895), the U.S. Supreme Court decided that the income tax was unconstitutional because it was not apportioned among the states in conformity with the Constitution."

"In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations."

the 16th amendment. "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."

Yet I keep hearing from a number of people that "taxes are voluntary". I was even tought that in my highschool history class.

I feel it is just for a government to have manditory taxes of its people. But a government must have the effect of being subtle, pervasive, limiting in the right amount, and stimulating in the right amount. For what I know about government and the condition of our government, the leading guideline should be the reduction of government and the defecit. Isnt there a party that is centered on the reduction of government?

The current administration, i believe, is operating under a very very different principle. So different from the thinking of your average american homeowner that its like going from newtonian physics to quantum physics. There are ideas, which may be perfectly valid, that on the national scale, the budget and the defecit shouldnt keep us from doing anything. We should always strive to make the best deal, spend as if we always have billions in the bank. It has more to do with riding global market forces, using trust as collateral, and inflation than anything else. Print a few billion in currency, forgive a few billion in 3rd world debt. Being in debt is not as permanent or as limiting as you think. We still have people, educated people, and people who will fight wars. We have tanks and guns and power plants and land for our own crops. What does the national debt have to do with those things? Dont take any of that as my opinion, they're experimental thinking - mental jumping jacks to help think outside the box.

interesting stuff: Congressional Budget Office Historical Budget Data

The national debt doesnt seem to have spiked, like I would expect it to since GW came to office. Maybe it doesnt show up on the books until later.

Check out the revenue/outlay as a percentage of GDP:

      Revenue      Defense       International   Domestic         Total
1999  20(1827bil) 3.0 (275bil)   0.2        3.0         6.3 CLINTON 
2000  20(2025bil) 3.0 (295bil)   0.2        3.1         6.3 BUSH
2001  19(1991bil) 3.1 (306bil)   0.2        3.2         6.5 BUSH 
2002  17(1853bil) 3.4 (348bil)   0.3        3.5         7.1 BUSH

revenue is dropping. apparently Bush belives the same thing I do, the government should be taking in less money. Whats unanswered is what classes of people are the ones who are holding onto more money than in the past?

taxes are dropping for everyone, expect in 2000.

all numbers in billions.

      individual taxes  corporate taxes
1999    879.5       184.7       CLINTON 
2000    1,004.5     207.3        BUSH
2001    994.3       151.1        BUSH
2002    858.3       148.0        BUSH

....but he keeps spending! Bush is taking less in, but spending even more!

"outlay entitlements and other mandatory spending"

       Social Security    Medicare    Unemployment
1999     387.0      209.3       85.3        21.4     CLINTON
2000     406.0      216.0       87.8        20.7      BUSH
2001     429.4      237.9       92.7        27.9      BUSH
2002     452.5      253.7       96.1        50.6      BUSH

Social Security and unemployment are gettings tons of dough. Isnt that a democratic agenda?