income tax

The Real Purpose for the Income Tax

The Real Purpose for the Income Tax

In 1945, then Chairman of the New York Federal Reserve Bank of New York, Beardsley Ruml, made a speech to the American Bar Association entitled, Taxes for Revenue are Obsolete. According to Ruml, and understood by those familiar with Austrian Economics, the primary purpose of the federal income tax is to redistribute income and wealth; and “in subsidizing or penalizing various industries and economic groups.”