Imagine a time when the government knew nothing about the money in your bank. It cared nothing about how much you made, where you made it, and what you did with it. You could take your earnings in gold, silver, paper, or anything else, and never filed a sheet with the government.
How you earned a living was none of the business of the political class. For that matter, your bank account could be under a false name and absolutely no one cared.
This was the world of a mere 100 years ago in the United States. That’s why it was called the “land for the free.”
Back then, all federal revenue — tiny by today’s standards — came from a tax on imported goods. That tax did plenty of damage, as all taxes do. However, the system was superior because it took only a tiny share of private wealth and, most importantly, it had no privacy implications for average citizens.
The reason for the dramatic change is rather simple. Now we have an income tax. The government determines how you are paid and what you can do with your money, and spends vast resources tracking it all. The government wants its share. Therefore you have no right to earn money without coughing up.
Read More at The Daily Reckoning . By Jeffrey Tucker.