HISTORY OF TAXATION SAYS HIDE YOUR GOLD

Our call for a rally in the dollar happened like clock work last week. But with tax time just around the corner we thought to add our two cents on what has long been a tired debate on both sides of the political isle – taxes.
Let us start by listing a little know fact about taxes since Woodrow Wilson had the disillusionment to bring “Democracy to the World” and saddle US citizens with the check:
Taxes go down when the economy is expanding and taxes go up when the economy is contracting. The implication of this axiomatic equation is simple – The government takes care of itself first, its citizens second.
Notice how Woodrow Wilson’s schism with our Founding Father’s central tenant to never get involved in a European War required instating an income tax on US citizens to bail out NYC money center banks who initially did the lending to our allies Britain and France.
Tax rates were then quickly reduced after World War I, but not to the level seen before the Great War. The highest tax bracket stayed at 25% during the roaring 1920s as government revenues soared along with the booming economy and our thoughts of Empire grew.