Skip to main content
  1. News
  2. Top News

COMMENTARY: 'Land of the Free' enters second century of IRS and Federal Reserve

See also

The year 2013 marked the 100th anniversary of two ignominious events in America: the imposition of a permanent federal income tax and the creation of the Federal Reserve Board.

Thomas Jefferson — Virginia’s second governor in the post-colonial era and the nation’s third president — opposed both actions on constitutional grounds. He prevailed, as long as he lived.

But others since 1913 (and even before Jefferson’s death in 1826) were hell-bent on confiscating private property, inflating the dollar and diminishing liberties to enrich cronies through aggrandizement of the central government, Kenric Ward writes in a column at

Americans have wandered far from the principle of limited federal powers. Ignoring Mr. Jefferson’s distant warnings, the new Old Dominion sided with the grasping heirs of his political nemesis, Alexander Hamilton of New York.

Barack Obama, along with the statewide slate of Virginia Democrats elected in 2013, purport to serve the “common good.” It was a favorite phrase of the mercantilist Hamilton, who twisted the “general welfare,” “commerce” and “supremacy” clauses in the Constitution to open a gigantic can of mischief.

The recipe: More taxing, more spending, more debt, more corporate welfare, more dependence on Washington and, of course, more subservience to unelected federal judges.

(Ironic aside: Republicans hold annual dinners to honor Abraham Lincoln, aWhiggish Hamiltonian who promoted all of the above; Democrats dedicate a day for Jefferson and Andrew Jackson, who definitely did not.)

Jefferson wasn’t the only Virginian who predicted Hamilton’s Big Government fetish would metastasize. James Madison, who succeeded Jefferson in the White House, also embraced the axiom that government which governs least — and is closest to the people — governs best.

Such quaint constitutionalism was obliterated in 1913.

Passage of the 16th Amendment permanently enshrined the federal income tax, giving rise to what Loyola (Md.) University economist Thomas DiLorenzo calls “the invasive tyranny” of the Internal Revenue Service.

The income tax “was the final nail in the coffin of federalism in America,” DiLorenzo writes in “Hamilton’s Curse.” Federalism, properly understood, balances state and national authority, with the federal government exercising only those duties expressly delegated by the states.

To secure the coffin, the Federal Reserve also was founded in 1913. Another Hamilton dream come true.

“The financial elites … were responsible for putting through the Federal Reserve System, as a governmentally created and sanctioned cartel device to enable the nation’s banks to inflate the money supply,” observed Murray Rothbard, a libertarian economist.

Instead of bringing economic stability, the Fed, whose chairman is appointed by the president, has presided over, if not spawned, America’s biggest financial crises.

Read the rest of the commentary here.



  • Pro-Russians killed
    Putin issues a warning after 3 armed protestors were shot dead in Ukraine
    Watch Video
  • Korean ferry capsizes
    Only one of 46 life boats were used in the South Korean ferry sinking
    World News
  • Oscar Pistorius trial
    Oscar Pistorius reads a Valentines Day card from his deceased girlfriend without tears
    Crime News
  • Google patent
    Google applies for patent for what could be the successor to Google Glass
    Tech News
  • 420 in Colorado
    Colorado will celebrate 420 for the first time since marijuana became legal
  • Racist Kansas murderer
    Why isn't the Jewish Community Center shooter being labeled as a terrorist?
    Watch Video

Related Videos:

  • South Korea ferry is now completely submerged: Survivor found hanging from tree
    <div class="video-info" data-id="518200144" data-param-name="playList" data-provider="5min" data-url=""></div>
  • Obama announces 8 million enrollees on Private QHPs: 'This thing is working'
    <div class="video-info" data-id="518200560" data-param-name="playList" data-provider="5min" data-url=""></div>
  • 89 cent refill $525: ‘Federally charged with a $525 fine for $.89 drink refill’
    <iframe width="560" height="315" src="//;autoplay=1"></iframe>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about and apply today!