American State is now derived from the earnings of those least able to bear the burden.
The income tax opened the floodgates of reform. It is interesting to note that while in the nineteenth century most reforms originated in the notions of dissident elements in the population, the reforms that have become law since the introduction of the income tax were instigated by bureaucrats. They had the money with which to indulge their passion for power. Certainly, the reform ideas seemed to spring from colleges, shops, and organizations, but there is evidence that they took form in the imagination of the vested interest, whose propaganda machinery gave enthusiasm for the reform a popular flavor. And so came the New Deal, which is the name given to a host of interventions called "social legislation." Each of these measures called for the establishment of another enforcement agency, more offices, buildings, and jobs. The bureaucracy did well by itself.
The net profit of reform is the accumulation of State power; the net loss is borne by Society. Out of the reforms advocated by the Gracchus brothers came the Caesars and "bread and circuses." Pericles set up a number of make-work projects and ruled for thirty years, subtly but with an iron hand. Bismarck was a reformer. Mazzini was the unwitting forerunner of Mussolini. Lenin was the archreformer of all times, in that his reforms culminated in the largest, the most arbitrary, and the most ruthless bureaucracy the world has ever known.
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