While reading a short essay by Frank Chodorov called the Income Tax: Root of All Evil, I came across an interesting, succinct point. On page 22, Chodorov states:
“If we examine the income tax carefully we find that it is not a tax on income so much as it is a tax on capital. What the government takes from me is not what I consume but what I might have saved. To be sure, I might have spent some of it for a new suit or to paint my house, but some of it I might have put in the bank, where it would have become available, at interest, to someone who would have used it to build a new factory, enlarge his plant, open a store, or buy a farm. That’s what generally happens to savings. Certainly, a good part of the earnings of a corporation are put to plant improvement or expansion, which it cannot effect if the earnings are confiscated. Hence, the effect of income taxation is to impair the capital structure of the country.”
Chodorov makes an excellent point in regards to the state’s attack with the weapon of the income tax on the capital structure of the country. The capital structure of a country is the key to advancing the civilization of the country. The greater the capital structure the higher the division of labor, the higher the standard of living, the higher the wealth. The income tax clearly is a weapon of decivilization. It must be stopped.