1 00:00:00,000 --> 00:00:04,400 I don't think people understand the depth in which the federal income tax has screwed the 2 00:00:04,400 --> 00:00:11,140 American people because the income tax didn't exist for the first 137 years America was a 3 00:00:11,140 --> 00:00:17,500 country. It was implemented in 1913 and shortly after that the income tax would become the 4 00:00:17,500 --> 00:00:24,840 government's primary source of generating revenue. The government would basically own your labor. So 5 00:00:24,840 --> 00:00:33,660 you're taxed at 33%. One third of your work for the entire year belongs to the government. But 6 00:00:33,660 --> 00:00:40,620 before the federal income tax, tariffs were the government's primary source of generating 7 00:00:40,620 --> 00:00:47,260 revenue. So the government would come along and say if companies want to import goods from other 8 00:00:47,260 --> 00:00:53,500 countries they have to pay a tax on those goods and this was the government's primary way of 9 00:00:53,500 --> 00:00:59,480 generating revenue. So let's use Nike as an example. They want to outsource their labor to other 10 00:00:59,480 --> 00:01:06,580 countries. India, China and basically hire people that work for under one dollar a day. Basically 11 00:01:06,580 --> 00:01:11,460 sweatshops. They want sweatshops. Well when they go to import those goods into the United States of 12 00:01:11,460 --> 00:01:18,580 America they would be forced to pay that tariff. So if it's 25% they would have to pay a 25% tax on 13 00:01:18,580 --> 00:01:25,660 the value of the goods coming into the country. Now they could either pay that themselves in which 14 00:01:25,660 --> 00:01:32,360 now the government's primary way of generating revenue is through these international corporations 15 00:01:32,360 --> 00:01:39,420 that want to outsource labor and do international business or they could negotiate with the company 16 00:01:39,420 --> 00:01:44,160 that they're importing from. I mean in this case it's themselves but if they're working with another 17 00:01:44,160 --> 00:01:49,640 company they could say hey if you want us to keep manufacturing in China if you want us to keep 18 00:01:49,640 --> 00:01:56,800 manufacturing in India you have to help us with these tariffs and now the government's primary way 19 00:01:56,800 --> 00:02:03,660 of generating revenue would not be by taking money from you the federal income tax but it's from 20 00:02:03,660 --> 00:02:10,340 charging those international corporations and corporations that are in other countries. Isn't that 21 00:02:10,340 --> 00:02:16,000 a lot better than them taking the money from me and you? And yes the price of international goods 22 00:02:16,000 --> 00:02:22,200 might go up. In fact the price of goods will go up but that's okay because there's also an additional 23 00:02:22,200 --> 00:02:29,380 incentive for companies like Nike and all companies now to manufacture goods in America which means 24 00:02:29,380 --> 00:02:36,940 American manufacturing would boom and this isn't theory this is what had actually happened and what the 25 00:02:36,940 --> 00:02:45,080 federal income tax really took away from us because from the period of 1860 to 1900 America had emerged 26 00:02:45,080 --> 00:02:51,840 as the preeminent manufacturing country in the world. American steel, American oil, Europeans would come to 27 00:02:51,840 --> 00:02:57,700 America and they couldn't believe that we had electric powered curling irons. The United States of America 28 00:02:57,700 --> 00:03:05,420 our country had become the innovative center of the world and jobs were booming. People talk about 29 00:03:05,420 --> 00:03:14,860 1910, 1920, 1930 with the unions with Detroit and Detroit being the manufacturing center of the world but that was 30 00:03:14,860 --> 00:03:21,580 really all of the United States of America but once the federal income tax was passed once that was 31 00:03:21,580 --> 00:03:28,880 established the government no longer needed tariffs to be its primary source of revenue. Now the primary source 32 00:03:28,880 --> 00:03:36,480 of revenue was reaching directly into our pockets and once the government was able to do that they were able 33 00:03:36,480 --> 00:03:45,040 to seriously consider abandoning economic protectionism, abandoning those tariffs so that international 34 00:03:45,040 --> 00:03:52,880 corporations could outsource our jobs to other countries and the government wouldn't be hurt, the cost of goods 35 00:03:52,880 --> 00:04:00,080 would go down and the international corporations would do better than ever but we would lose our jobs and the 36 00:04:00,080 --> 00:04:07,680 government would take ownership over our labor and that was the real cost of the federal income tax and that's the 37 00:04:07,680 --> 00:04:15,440 conversation they don't want Americans having. They want us arguing over should we pay 50% taxes or go with the 38 00:04:15,440 --> 00:04:22,320 Republicans and pay 45% taxes. But when you read a lot of history, you know that it was really always about 39 00:04:22,320 --> 00:04:29,920 tariffs. It was really always about banking. It was really always about the gold standard and this is why people like Andrew 40 00:04:29,920 --> 00:04:35,760 Jackson and William McKinley were so popular because they were fighting against that 41 00:04:35,760 --> 00:04:45,280 internationalism that had tried to creep its way into America from 1776 when America had broken away and things haven't 42 00:04:45,280 --> 00:04:50,640 always been this way and they don't have to remain this way. But we have to teach our kids right.