Charles Hugh Smith – As the global economy slides into recession and the U.S. economy catches a cold, the blueprint for raising taxes will be dusted off in every state.

The blueprint for raising taxes in the modern era was first established in 1913 when the federal government instituted permanent income taxes. Prior to 1913, income taxes were viewed as wartime emergency measures to raise money for the immensely costly prosecution of war.

Here’s the blueprint for raising taxes

1. Declare the tax is an emergency measure.

2. Start the tax out at a low rate to minimize resistance.

3. Levy the tax only on the wealthy to play the “it’s only fair” card.

4. During some late-night session when the public isn’t looking, make the tax permanent by burying the provision deep inside some popular and/or complicated legislation. Continue reading →