Ross County Republican Party

Ohio University - Chillicothe

College Republicans

Brought to you by: Alan R. Davis Chillicothe, OH

It's only a Question of Your Future! Quiz Answers

1. In which year did we have our first permanent Federal Income Tax on individual incomes? 1913

The 16th Amendment gave Congress the right to impose Federal Income Taxes on individuals without it being proportioned based on state's population. Prior to its ratification, the Federal Government raised revenues through Tariffs and Duties and fees. Congress could raise money through taxes, but they were required to be based on states populations, not individual's incomes.
http://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitution

2. What was the top rate when the FIT was initiated? 7% It was progressive in nature and included two components. The first component was a 1% flat tax on taxable income. The second component was a progressive tax on income over $20,000 ( $440,517 in 2011 $'s). The top bracket was on income over $500,000 ($11,012,929 in 2010 $'s).
http://www.irs.gov/pub/irs-utl/1913.pdf

3. In which year did we first describe wealthy as someone earning $200,000 or more? 1922 In 1922 there were 50 tax brackets. The top tax bracket was on income over $200,000 ($4,405,172 in 2010 $'s). In 1921 the top bracket was on income over $1,000,000.
HTTP://WWW.taxfoundation.org/publications/show/151.html (Links to files near bottom of the page)

4. From 1791 to 1913 we had 123 budgets. How many of those budgets finished with Surpluses? 82

From 1791 to 1930 we had 94 surpluses out of 140 budgets. We had a clear practice running budget deficits in times of war and extreme economic hardship and budget surpluses in times of peace and prosperity. Surpluses were used to pay off our National Debt that was built up during wars and economic downturns. While the period from 1931 to 1969 was a period in which we fought 3 wars (WWII, Korean and Vietnam) and experienced the "Great Depression", we still managed to have 8 surpluses out of 39 budgets. After 1970 we began running consistent budget deficits.

http://www.whitehouse.gov/omb/budget/Historicals (Choose table 1.1) 5. From 1933 to 1994 there were 31 sessions of Congress. How many of those sessions did Republicans control the House? 2 While Republicans had controlled the House for much of the time from 1865 to 1930, voters gave Democrats control of the House (by large majorities) from 1931 to 1994 (64 yeas). The two exceptions were the 80th and 83rd Congressional Sessions (1950-51 & 1952-53 respectively). Democrats controlled the house beginning in 1954 until 1995. During that time their average majority was 88 seats in the House (and 17 seats in the Senate).
http://artandhistory.house.gov/house_history/partyDiv.aspx http://www.senate.gov/pagelayout/history/one_item_and_teasers/partydiv.htm

6. From 1970 to 1995 we had 26 budgets, all finishing with deficits. Which party controlled the House when those budgets were passed? Democrats Democrats controlled the House for all 26 years. They had an average majority of 93 seats (264 to 171). They controlled the Senate for all but 6 of those years. Those years years were when President Reagan was in office (his first 6 years).
http://artandhistory.house.gov/house_history/partyDiv.aspx http://www.senate.gov/pagelayout/history/one_item_and_teasers/partydiv.htm

7. How "big" was the National Debt the last time the Democrat Party was responsible for a budget surplus (1969)? $367 Billion The National Debt was $367 billion dollars at the end of 1969. August 2011 the National Debt ceiling was raised to $16.7 Trillion dollars ($14.3 + $2.4).
http://www.whitehouse.gov/omb/budget/Historicals (Choose table 7.1) http://topics.nytimes.com/topics/reference/timestopics/subjects/n/national_debt_us/index.html

Summary: A picture emerges that shouldn't be a surprise to most people. Our practice related to financial responsibility (our Nation's budget and debt) has changed significantly since the time the country was founded. Initially the government had limited income and therefore was limited in size and scope. When the Federal Income Tax was put in place, it increased the amount of money available to the government. Congress, under Democrat leadership, controlled the amount of income the government would have AND what that income would be spent on. This led to higher tax rates and new government programs. The philosophy related to debt changed during the late 1960's. As government's roles increased, Democrats determined it would be appropriate to use debt to finance the increase in government. The has lead to a policy of consistent deficit spending and large increases in our National Debt.

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