Several attempts at national income taxes had been thwarted by the courts, most notably in the Pollack case. Government realized that a Constitutional Amendment was the only way to tax individual income.

The income tax amendment, the sixteenth to our constitution, was proposed by President Howard Taft and Congressman Nelson Aldrich. It was passed through Congress and sent to the states for ratification. Proponents of the tax cited a need to prevent economic aggregation into the hands of the wealthy few as the reason to ratify this amendment.

February of 1913, the Sixteenth Amendment was proclaimed as ratified by Secretary of State Philander Knox. Congress could now, for the first time, legally and directly tax the income of individual citizens of the United States.

The first income tax law, on the “rich”, set the tax at 1% for individuals earning $425,000 in 2009 currency. Funding was now accessible as the amendment allowed Congress to directly tax whatever income they desired from whatever means it was derived.

Yet Congress found another hurdle in the States. Further economic centralization, namely for the banking industry, would need to prevent State’s from blocking legislation through their granted balance of powers in the Senate. Senators were elected by State legislatures.

In 1911, citing corruption, stagnant state legislature elections, and laws in some states providing for such already; Congress sent the Seventeenth Amendment to the states for ratification. If ratified, this amendment would have Senators directly elected by the people.

State’s, via the Senate, tended to balk and deliberate over legislation rather than be malleable to public opinion.

April of 1913, the Seventeenth Amendment was ratified. Senators could now act without fear of reprisal by their State legislature. Another balance of power removed, removing another block of our Republic and dragging us closer to pure democracy.

Yet, what it would cost the nation in the long term was yet unknown.

Pivotal moments affect every nation. Originating from crises that are both external and internal in nature, these moments demand critical attention.

Unfortunately, history is littered with crisis after crisis contrived only to advance an agenda. An ever-increasing interventionism is at the heart of that agenda. How many politicians have you heard say, “from chaos comes order”?

United States’ pivotal year was 1913, culminating in a Congressional coup-d’état.  Follow me as I detail the takeover timeline.

While breaking from English control, many founding fathers still favored the private central banking construct of London. Beginning with the Bank of North America in 1781, this group led by Robert Morris established the first central bank in the history of the United States.

Four years later the bank was shut down due to massive corruption.

Six years later Alexander Hamilton spearheaded another movement establishing the First Bank of the United States. Strident opposition was found in Thomas Jefferson who knew the danger of corruption involved in financial speculation and manipulation. Five years later Congress chartered the Second Bank of the United States, a copy of the first.

Twenty years later, President Andrew Jackson fought for the American people in destroying this bank with corruption again being the culprit. The ability to manipulate finances through market speculation bred corruption, as Jefferson warned.

A quarter-century of freedom from central banks was enjoyed by the populace until the Congressional coup began with the National Banking Act of 1863 which again centralized national banking operations into private banking institutions.

Prior to this, banking was governed by State banks that would issue currency. Currency issued had to be backed by appropriate reserves and could be exchanged for value with other State banks. The NBA of 1863 centralized this process with a charge to the State banks of 10% for currency exchange effectively eviscerating profitability for these banks.

Imperfections created by the NBA of 1863, namely with liquidity (sound familiar), led to the Panic of 1907. Government economic manipulation led to a crisis. A crisis led to a fervent public outcry for economic stability. Public outcry was capitalized on by the government to intervene and gain more control.

How would they do it?