tv Kennedy FOX Business May 22, 2021 8:00pm-9:00pm EDT
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we lower tax rates, our entire nation is better off and for mr. trump, he argued lower tax rate will make america first. thanks for watching, that kudlow. we can still be it and low taxes are the best of all. ♪♪ >> this nation began in a revolt against taxation. >> every dollar released from taxation will help create a new job. read my lips. [cheering] . >> taxation an issue that's been with us since before thery revolution. the boston tea party and all the events that set us on the path
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are wrapped up in tax policy. the creation of a new constitution since 1787, a recurring theme of political debates across the 19th century. >> the cost of government, a chance to fund the people. >> economic policy all the way up to the present day. >> the very wealthy should pay their share. corporations should pay a fair share. >> i hope they don't raise your taxes but if they do, i told you so. >> the one issue that people today could have a conversation with people in the colonial era see philosophical blowing all the way through. to understand american history is to understand taxation. a ♪♪
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>> my latest project is the second in our series of unauthorized histories. this time a new five-part documentary exploring how taxes shaped america frome- the boston tea party to today. our stories an epic tale about money, power and ultimately your basic freedoms, rights and obligations. begin long before the american revolution on a june day in an open field 20 miles outside the city of london in the year 1215. ♪♪ the magna carta is regarded as one of the most consequential documents in history. one of the most consequential documents in history but eventually set the stage for t america's own revolution and while it's signing is one of the most important events in the march towards democracy, an individual rights, it's also the direct result of the tax revolt. >> the background of the magna carta is kueng of england, we all know the disney robin hood
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series, evil prince john. >> he was actually a tax and spend figure and waiting a series of wars mostly on the continent in france we are starting to drain the treasuryy tax with the nobleman and basically made him a fixed signature to this charter guaranteeing certain rights mobility and basically what is said about taxes, the taxes could not be assessed without consent of the governed and they are talking about mobility a big part of the english constitution and eventually trickles down into broader doctrine of consent and transfers over to the united states. ♪♪ >> for most of the colonial period, it is a tax haven for british subjects. taxes were lower than home country.
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as so often happens throughout history, the cost of waging war changed the tax system. >> 1763 was the french and indian war and after that, england is in huge debt. >> so when in the 1760s, they start taxing, they wanted to know their rights where's our representation, i didn't, the revolution of 1775. >> throughout the colonies, americans rebelled against the new taxes and like those who revolted against kueng john, the founders embrace the common has god given and perceived to the state. government has created by the people, not vice versa. in their view, government soul
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purpose is to secure the rights of its citizens which include property rights. >> the american view of taxes goes directly from life, liberty and pursuit of taxes. an infringement on your liberty taking something from you without having a choice and the pursuit of happyness, you don't have as much money and it might stop you from doing things you'd like to do because it's too expensive so if you believe to life, liberty and pursuit of happiness, you get prickly when the taxes don't look right, it's a different view of the universe than saying first and foremost is the kueng and kueng decides what the king needs and you get what is left over. >> for a nation founded on a tax revolt against the british government, it's perhaps surprising americans soon found themselves at odds with their own government. once again, the bone of contention was taxes. >> what happened when they met together in philadelphia to revise the articles and
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basically a complete overhaul for the constitutional system, they establish a power of congress to assess what they call excises imposed and duties upon the public in one of the things they tax is whiskey. t whiskey passes on whiskey and it's on one product, that didn't seem fair. if you're one of my forefathers hanging out in western pennsylvania which is the frontier at that time, this was something in washington saying you have to pay a tax, it didn't feel like what they fought for which is everyone gets to say, it felt like hey, the king was coming back and now we have this tax. >> so if you came into the area to be a tax collector, you could have your tax office vandalized, burned and one of the worst things that could happen to you was you could be targeted. >> it took george washington himself to quell the rebels.
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>> george washington settles up, the only recorded time in american history to be commander-in-chief actually serves as commander-in-chief and rides out with his army. >> 12,000 900 and 50 soldiers came to thiss area, that's a larger force in washington had ever commanded in the revolutionary war. >> eventually diffused washingtonse and issued pardonso the arrest of the tax rubble that basically sets the rebellion at ease for a short period of time. >> as you will learn on fox nation in my series, tax resistance takes many forms in the violence unleashed during the revolution and whiskey rebellion, just one way americans demonstrated their attitude toward taxes. next, how taxes threatened the union decades before the civil war and a story about fort sumter, you probably haven't heard. ♪♪ haven't heard
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at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com. (upbeat music) - welcome back to fox nation presents, the unauthorized history of taxes will come back tore fox nation presents the unauthorized history on authorized history of taxes. this is my streaming series. decades before the civil war,
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politicians from the north and south they saw in a major crisis. over taxes. it was sparked by congressional game of chicken resulting in what was called the tariff of abominations. ♪♪ america in the early 1800s was on foreign trade especially manufactured goods. bustling with textiles, spices and iron, some goods entering the country were subject to an import tax called a tariff. from the beginning, tariffs were viewed as benefiting the t industrialized north at the expense of the self. northern factory owners were raising the price of manufactured goods while southern farmers paid more for items from overseas or the north, a growing source of tension in 1828, one southern politician got a littlee too clever and tariff politics a new
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and harmful term. the bill a introduced quickly earned the name the tariffs of abominations. a tariff bill was introduced that was sky high. the guy who introduces it in the senate is john c calhoun, a total opponent of tariffs. why did he do this? calhoun thinks he's going to pull a fast one on the probe tariff people. you going to introduce a tariff so bad, so huge, even the north will vote against it. it backfired because the northerners go, it's really high but okay, it's a tariff, will vote for it. calhoun says what? no, you're supposed to vote against it. >> the tariff of abominations provokes an immediate political backlash, it's nationwide but it becomes very isolated and focused in south carolina.
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>> south carolina said no, we're not going to collect duties, or enforce it. calhoun is talking about insurrection and civil war, 1830. >> he gets the state of south carolina to pass a resolutionn declaring they nullify the tariff of abominations at the federal level and refuse to enforce it. axt thing you know you have constitutional crisis. >> south carolina called out militia on tariff issues in the 1830s. 1830s, just the tariff so it was a huge a issue and tears countrs apart. >> andrew jackson said we need the federal government to suppress it like the whiskey rebellion and in south carolina withdraws. >> with the crisis averted, jackson still wanted to send a warning to southern secessionists in order that plan for new military installation in charleston harbor, the upgradedt timber to bread creating what
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would become one of the strongest fortresses of the era fort sumter. >> fort sumter was billed in the 1830s by the federal government to prevent south carolinah from nullifying federal laws, the tariffs. fort sumter was the federal reaction against the south carolina tariff reduction in the 30s. that signal could not have been more clear to south carolinians. >> abraham lincoln's campaign to the white house brought the economic divide between north and south, front and center again. lincoln was at the time, a tariffff man. or as he s put it -- >> politics are short and sweet like the old woman's tasks. i'm in favor of national bank, in favor ofor the internal improvement system and high protective tariff. ovabraham lincoln, 1832. >> while south carolina
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agitating for system and other states are joining it, the tariff forces in the senate was in the northeast realized they had opportunity to pass a new tax bill. >> the new tax bill was the work of representative justin myth of vermont, former wig and one of the founders of the new republican party. the moral tariff established a 45% tax on manufactured goods and 50% tariff on iron, raising the cost of just about everything manufactured in america at the c time. >> the evidence that we have from declarations of the seven states especially the original deep south states is unambiguous that they are seeing over the threat of stably. at the same time, the tariff act which had been in agitation passed throughve congress so thy see it as a secondary, it's a distant secondary issue but it's
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like going gasoline on an already raging fire, just another because the southerners seceding over what they perceive as a real threat to slavery from lincoln's presidency, not only are they trying to take our slaves, they are trying toln tax us, to. >> it ripped the country apart and damaged the south taking advantage of thehe north so i slavery, you have a civil war but you might as well have had civil war just on the tariff, it was that big an issue. >> it likely would not have surprised andrew jackson that the first shots of the civil war were fired at fort sumter now a fortified battery controlling the harbor of charleston, the confederacy's most important east coast port city. a military response at fort sumter was not worth the risk of escalating hostilities but lincoln replied. >> open charleston as port of entry with the 10% tariff, what
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then would become of my tariff? abraham lincoln, 1861. >> a cartoon summarized the situation. uncle sam uses huge fellows to send ships south to enforce the blockade helping uncle sam power the bellows? taxes, more taxes and tariffs. one surprising thing i learned is the deep relationship between federal taxation and booze. from the whiskey rebellion to moonshiners addition to the roaring 20s, alcohol and taxes are intertwined throughout our history. look at that, after the break. ♪♪
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a new rebellion began in the south. like the first whiskey rebellion, dissipated federal tax authorities against rural makers of unregulated spheres who came to be called moonshiners because they operated their stills at night. unlike the earlier whiskey rebellion, this lasted for years helping shape practices and methods of the institution that would later become the irs quickly turned into a paramilitary operation using deadly force against american citizens in o order to collect federal taxes. >> that. lies in the hundreds years long development. the first is the evolution of the u.s.g economy from an wearig economy to one which is smaller sector and we went from an economy that didn't barter, transactions with whiskey state
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currencies, private currencies to a a genuinely monetized econy right in this. that happens, thated makes professionals monitoring the money for revenue purposes much easier and led straight into the idea that you shouldn't have a professional internal internal revenue service doing this with marginals at a high degree of professionalism, that was the idea. >> but to make tax collection more professional would require a major change in how the internal revenue bureau was staffed part of a larger evolution in the way government bureaucracypa operated with far-reachingng implications. ever since the rise of the two-party system, winning candidates what how to hand out jobs to support us old the spoils system. ♪♪ but by 1880, the spoils system had grown so large and corrupt
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they called out for reform electing a candidate who promised change. james garfield wasly elected in 1880 specifically to deal with the spoils system and he comes into office and viewed his reformer and one of these jobseekers who didn't get a a jb killedid it. the assassin was the deranged charles coteau who somehow believed vice president chester arthur would preserve the spoils system. >> he says chester arthur is now president and the idea was chester was a customs commissioner from new york city and it was thought he favors the spoils system. >> but arthur ended up surprising them. >> arthur comes in andnd says we've got to fix this system so he lends it to something that becomes law in 1887 after he's
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out of office called the pendleton act which is the pendleton will service reform act and what it does is many, many thousands of these jobs into a testing position to get a job to go into the civil service, you have to take the exam and that drastically cut down the number of jobs a single president could give away. good, right? no. i liken it to horror movies where the creatures growing behind the teen on the phone at the sink, it's great, it's growing -- you are going to turn around, turn around, it's going to kill you. the government is growing with every e election and nobody notices and that greatly increases the skies and scope of the federal government.
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today chester arthur is remembered mostly, if at all for his expansive waistband and impressive sideburns. you can learn more about his surprisingly important legacy regarding taxes on fox nation national. ♪♪ with fox nation the streaming service that features original shows celebrate your faith withfe fox religion live to our country's most pivotal moments with fox history. they take you on a journey for food, home, travel, leisure explore the policy and the faith that explore our great nation and investigate crime stories with fox justice all available on your tv, computer, tablet ands smartphone fox nation america is streaming. >> i am back at the border in .a special two-part episode. i'm taking you to the front line. >> in a firsthand look at how secure our borders truly are.
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with exclusive footage you can with exclusive footage you can only get on fox ♪♪ [sfx: revving trucks] pilot over radio: here we go, let's do this. ♪♪ pilot over radio: right there, right there. [sfx: revving trucks] pilot over radio: g complete. how do you introduce the larger-than-life gmc yukon? with the world's biggest tweet. the next generation gmc yukon. premium that's made to be used. did you know that geico's whole 15 minutes thing... that came from me. really. my first idea was “in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain.
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(upbeat music) serendipity. - welcome back, the bill comes due every year, the income tax. welcome back. the bill comes due every year, the income tax. when it first passed back the income tax. when it first passed in 1913, it wasn't supposed to be that big of a deal. you know how that goes. as a new century second, american businesses are getting bigger. income disparities group even ai the nation as a whole got richer. politicians and populace demanded the federal government tax the rich get them to pay their fair share. the goal? greater economic equality by redistributing income and
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wealth. ♪♪ >> the federal income tax originates in 1909. four years later, it's ratified four years later, initially this is not big because we are operating in a time with the federal government tries to raise the amount of revenue it needs to sustain its current operations but a major event happens. ♪♪ >> america is called, the chair down. >> the u.s. enters late into work one but suddenly it's revenue demand on the federal government and they look around and sayay wait a minute, we have this new tax power passed in 1913 to the constitutional amendment income sttax. >> so they raise taxes on the lowest bracket him half a% to
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25%, almost five times, four and a half times bigger than what was previously on the highest bracket. from the highest bracket it goes from 6% to 75%, literally the richest americans are going to be taxed at three quarters of the income. the proposed one 100% tax on everything over 500 thousand and that's not too far, we are not ready to go that far yet. today they might but back then, that's a little far to go. ♪♪ >> the great war ended in 1918 for the income tax continued. now with a permanent professional bureaucracy in place and enforcementur arm with paramilitary power, government would expand and taxes would grow to pay for all. the income tax proved surprisingly effective and while some resistance, there was no
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great outcry or rebellion and the police power of the irs provided the state with almost unlimited abilities to harass and enforce. >> we interrupt to bring you a special news by air, we take you now to washington. >> in world war ii, aware now that the income tax was a mighty engine, the federal government decided to use it. >> world war ii had a huge impact on the tax system. before world war ii, not that many people, americans qualified to pay income taxes and they did so on an annual basis. >> as late as 1939, only 4 million americans filed income taxca returns but as the war continued, 50 million americans joined the tax.
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the treasury department turned to an unlikely spokesperson to sell the american people on the idea that dropping that check in the mail was their patriotic duty. >> there is a new spirit in america, your country needs you. are you a patriotic american? eager to do your part? >> yes, sir. >> is something important you can do and i can tell you what is shall i? >> what is the plan? >> your income tax. >> income tax? >> your income tax. >> it may not seem important to you but it is important and if you're privileged, not just your duty but your privilege to help your government by paying your taxes and paying and promptly.
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what's the big hurry? your country is at war. ♪♪ >> more timear off and changes, size and scope of government, decisions made and at the end of the day, two things are true. government always comes out of war and crisis is larger and taxes inevitably go up to pay for it. some marginal tax rates succeeded 90% in the 50s although lawyers and loopholes kept almost everyone from paying those kinds of taxes but the young democratic president, john f. kennedy soon promised a revolution rounded on the idea of tax cuts, an idea that ronald reagan would also embrace. that story is coming up next. ♪♪ ♪ we created something phenomenal ♪
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♪ don't you agree? ♪ ♪ don't you agree? ♪ ♪ ♪ ♪ ow! ♪ (judith) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how? don't you just ride the wave? (judith) no - we actively manage client portfolios based on our forward-looking views of the market. (other money manager) but you still sell investments that generate high commissions, right? (judith) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money? only when your clients make more money?
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(upbeat music) in our fox nation series, we keep coming back to the idea that when it comes to taxes, incentives matter, in our foxht nation series, we keep coming back to the idea that when it comes to taxes, incentivese matter. that was that was the central insight of the group of beggars who led what would be called the supply-side revolution in the 1980s. the story that starts in the
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1960s. ♪♪ the 1960s began, high taxes team a permanent fixture in america but president john f. kennedy had a radical idea that would spark a revolution in tax policy. for kennedy, that idea originated from someone very close too him. >> i would say one of the main people was his father, his father deeply understood the importance of not overtaxing view was thaty's if you actually think you have a revenue problem, the best way to achieve more revenues is too lower the cost of work in the first place. >> the young presidentos outlind tax plan at the economic club in december 1962 pledging to cut personal and business taxes. >> with the promise that revenues would go up, not down. >> is a paradoxical juice, tax
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rates are too high today and tax revenues are too low. >> as kennedy predicted, the economy boomed. >> to give us prosperity so economic growth, along. , eight years, 5% a year. that memory that this is the greatest era of influence was by the kennedy tax sector. >> along with economic growth came an expansion of government spending, the war in vietnam drained thesi federal treasury d lyndon johnson ambitious social agenda would require a huge commitment of federal funds. he called it the great society. >> what was the great society? and ambitious program, it wasn't called the goodle society, it ws called the great society. we raised taxes and they did. raise tax a lot so everything slowed down.
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>> government spending spiraled upward. the lessons of the kennedy tax cut was seemingly forgotten, at least in washington. it was a toxic economics to that came to be called stagflation. >> stagflation was the combination of very high unemployment and high inflation and it felt like america was the industrializing at that time. >> one approach to attacking stagflation was based on relearning the lessons of the kennedy tax cuts that came to be called supply-side economics. one key to the supply side movement was a simple shop. the verticalpl axis shows tax, e horizontal axis shows tax revenues and became known as the laffer curve. >> it's just a simple relationship between tax revenues tax rates. if youax tax at zero tax rate no
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matter how much people produce an income they have, is no tax revenue. likewise if you tax 110% of what someone earns, every time they go to the office instead of getting a check, they get a bill, sooner or later they would quit and have no income even though you have high taxes, you still get zero and what you can see as you raise raise rates from zero on up, revenues increase in lower 100% on down, revenues increase if you raise the price of a product so high no one wants to buy it, you lose money. you have it so low even though lots of people want to buy it, you make no profit, you will go broke, is a proper place, the same true for tax rates. >> we just thought we were nuts. wait a minute, you're going to lowerr taxes and pay for themselves? how much? what? >> what i'm saying type of what
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i call a voodoo economic policy, it's not going to work. >> used to tell the joke about the fact that a busload of supply side went over the cliff and that's the good news. the bad news, there were three empty seats. >> thank you veryy much. >> by 1980, the supply-side argument for cutting taxes entered presidential politics. >> i've long advocated 30% reduction in income tax rate over a period of three years. [cheering] >> seven month after taking office, president reagan signed the roth tax bill, almost 20 years after john f. kennedy first proposed the idea of local in 1986, reagan passed his second landmark tax bill. >> in a moment, i'll take the most sweeping overhaul of tax code in our nations history, who would have thought in 19815
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years later could pass a tax bill that gotto rid of tax shelters, reduce brackets down to two, top rate dropped to 28%, passed the senate 93 statement ship. >> president biden promises the most expensive tax reform in almost 30 years along with a major increase in public spending. who will pay for it? that's next. ♪♪
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written for revenge for the boston tea party. >> relocating to avoid taxes is of course, as old as taxation itself. individuals, businesses and even rock 'n' roll bands moved operations j just to get away fm the taxes. ♪♪ in the 1960s and 70s, high taxes bring robust driving bands like the rolling stones to leave the country for more tax from the places. they recorded exile on main street. >> keep richards talked about taxation in the 1970sbo is the ultimate place, he clearly put it, they thought we would believe but ultimately we did, the top tax rate on income was 83%, the rate on capitol gains, what they called unearned income was 98%. the rolling stones were at 98%n'
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rates and said there's no way we are going to work to get all production to someone else so theyd moved and made the greatet album they ever made him exile on main street.fr >> rock stars of england in the 1960s and 70s at work today within the united states. >> literally talk to people all day long. we are in the hamptonon house ao lived here are hudson valley house. >> larry says economics is not rocket surgery. >> i say you got to come back. when you comingt back? go to dinner and buy a drink. come over, i'll cook. they are not coming back right now you knoww what else? if i stay there, they pay lower income tax. >> if you have two locations, a and b, you raise taxes and be in lower them in a, producers and manufacturers are going to move
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from b to a this is what happens with economics. i don't care whether you are tall, short, male, female, old or young, that's economics, incentives matter. even socialists respond. >> for anyone making over $400, let me tell you why. it's about time they start paying a fairr share of the responsibility we have. >> would come to a time in america where there's a lot of get even, a lot of desire on the part of people who don't think they are particularly rich to get evenf with those silicon valley or bond trader. >> how many did well with that $1.9 trillion tax cut. [cheering] really good shape, right? that's good, i'm glad to see you're doing well already but guess what, if you elect me, your taxes are going to be raised, not cut.
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>> raise taxes on them, that no longer a disqualifying characteristic because it's not going to affect me, it's going to affect them and biden was honest enough to say we're not doing to raise revenue, wasn't talking about lowering national debt when he did this, he saying so that we can pay for all of these progressive p programs frm the green new deal other things. this is basically saying we are going to raise taxes on this group to affect change for people over here. >> today the u.s. government runs the highest deficits as a percentage of gdp is the second world war. even before the pandemic, the deficit was nearly $1 trillion a year this year will nearly quadruple to almost $4 trillion. [cheering] >> i hope they don't raise your taxes but if they do, i told you so. >> tax evasion and tax avoidance
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as old as the process of taxation itself. it's the human history we know to the a ancient world. it's a condition of life we have to live with. if you overtax someone, they're going to look for ways to get around it. they are going to look for ways whether it taking advantage of legal mechanisms in place or as we saw in european countries that did attempt to enact taxation and highly progressive taxation, what happened? all the wealthy people left and moved to other countries and we can do one of two things in assessing that situation. one, pretend it doesn't exist and proceed c with utopia. two, recognize humans to respond to incentives and they will tolerate a certain level of taxation as a necessary price to operate a government and meet the revenue needs of our government but they were only tolerate up to a time and in so
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far as they perceive it as their. >> that's our program. i hope you're ready t to check t all five episodes of unauthorized history of taxes on fox nation. you can stream otherox programs i've done including my first unauthorized history documentary series, authorized history of socialism. for fox nation and fox news, i'm right there. ♪♪ . >> tell us no doubt groups agitators bring in hments gas masks pushing a message and you are seeing that, unfold, in every scene across the country. . >> ♪ . . >> welcome lara logan fourth season of investigative series has no agenda available on
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