The Federal Income Tax Turns 100!

The 16th amendment was passed and 100 years ago American's started paying income tax.  Initially there were 7 brackets starting at 1% with the top bracket being 7% on incomes over $11,000,000+ in today's dollars.  Right now nine states manage without any income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee, New Hampshire) and when Bobby Jindal, Gov. of Louisiana, announced his #1 legislative goal for 2013 was repealing his states income tax it only took days for him to back down and recant his extreme position.

More states are considering the repeal of their income tax  Nebraska, Kansas, Georgia, Oklahoma and North Carolina are seriously considering this as way to compete with their neighbors and create jobs.  Maybe Governor Jindal should have started with corporate taxes?  I've talked to many Virginians about the idea that corporations shouldn't be taxed because they ultimately pass this cost onto consumers.  The feedback I’ve gotten has been quite positive.  People from various backgrounds and political views seem to innately understand the concept that corporations don't pay tax, people pay tax.

Virginia's legislative session is over, but as our elected officials file their returns I hope they appreciate our system is just too complicated at best and that the 100 year experiment has resulted, as predicted, in a government that knows no bounds.  Maybe, just maybe, it's time that once again Virginia take the lead and consider "extreme" tax reform.