military

Without revenues, a government can have no power.
Alexander Hamilton, First Secretary of the US Treasury

You will find no federal holiday dedicated to our love of taxes. There will be no parades in honor of taxes. No ceremonies, concerts or TV specials. This is because many in the US think of taxes as a burden, this heavy weight on our collective shoulders that “isn’t fair.” Some folks even dare to say that they have never benefitted from our system of taxation. Those folks are wrong. In fact, it is completely fair to say that our country is the country that it is today because of taxation. Our history as a country is deeply affected by our system of taxation: the wars that we fought and won have all been financed by a system of taxation. All that has changed, really, from war to war is the kinds and levels of taxation.

In the late 18th century, in order to pay off debts from the Revolutionary War, Congress imposed a number of taxes on such luxury items as alcohol, tobacco, sugar and some real property. A few short years later, Congress imposed additional excise taxes to pay for the War of 1812. Those excise taxes were later repealed.

In the relative peace that followed, the US government didn’t collect revenue directly from its citizens. Instead, the government depended heavily upon the sale of public land and customs duties. That all changed in 1861, when the financial pressures of the Civil War forced Congress restored excise taxes and instituted the tax many Americans grew to hate: the personal income tax. The income tax was levied at 3% on all incomes higher than $800 a year.

Nearly half a century later, the financial burdens associated with World War I made income taxes a centerpiece of our modern economy. By the mid-20th century, income taxes were firmly linked to maintaining our position as one of the most influential countries in the world, linked closely to the continuous presence of a powerful military.

This is not to say that all of our military decisions have been good ones or that our tax system is perfect. But before you decry taxes as completely wasteful and useless, take a moment to think about what it has bought us: freedom and democracy.

I say this on a day when we honor those who have fallen protecting our country, those that have offered up sacrifices far greater than a few dollars out of your pocket. The men and women who have served our country have spent endless days away from their families and have been thrust into dangerous and unfamiliar situations. Some of them never made it home. And many of those that did, came back with injuries and memories that are far more painful than we can imagine.

And maybe you don’t like paying taxes. But there are those who have gone to their deaths to defend your right to say that out loud, for me to scribble away on my blog, for you to attend tax protests and cast a vote about how you feel.

Think about that. And on this day of remembrance, take a moment to thank our soldiers for their contributions to our country. They’ve given us so much.

Finally, indulge me for a moment. I wanted to a give a mention to my brother, Rob; my brother, Timothy; my father-in-law; my grandfather; my great-grandfather; my uncles; my cousins; and all of those that I know who have ever donned a uniform for our country. On this day – and every day – I thank you.

Image courtesy of the US Army through Wikimedia

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