The Great Ray Gun Rip Off refers to the simultaneous shift in taxation from the rentiers of the society to the actual producers of the society and the accompanying build up in defense spending in pursuit of "ray guns" that would be used to destroy incoming Soviet ICBMs; the, so called, "Star Wars" defense system championed by Ronald Ray-gun. We first document the shift in taxation from higher incomes which are mostly incomes from Economic Rent to the wage earners of the society who must consume a larger portion of their incomes simply to survive. These figures are from Tax Timeline. An on line encapsulation of the tax changes since the early 1900's.

1981 - The Economic Recovery Tax Act of 1981 (ERTA) passes. Otherwise known as Reagan's supply-side tax cuts. They included: An across-the-board reduction in individual income tax rates of approximately 23 percent, phased in over 33 months. A reduction in the maximum top rate from 70 percent to 50 percent, beginning in 1982. (ONLY UNEARNED INCOME FROM INTEREST AND DIVIDENDS HAD BEEN TAXED AT 70 PERCENT. WAGE AND SALARY INCOME WAS ALREADY MAXED AT 50% PERCENT). . Inflation-indexing for the individual income tax brackets, the zero bracket amount and the personal exemption, beginning in 1985. The accelerated cost recovery system (ACRS), which provided depreciation write-off periods ranging from 3 years for equipment to 15 years for structures. Reduction of the maximum tax rate on capital gains to 20 percent.

1982 - Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) passes. Institutes a half-basis adjustment for investment tax credits in calculating depreciation. Repeals the acceleration of depreciation scheduled in 1985 and 1986 by ERTA. Raises the federal unemployment tax (FUTA) wage base from $6,000 to $7,000 and the FUTA tax rate from 0.7 percent to 0.8 percent . Increases airport, airway, cigarette and telephone excise taxes. Reduces tax-free contributions to a defined-contribution pension plan from $45,475 to $30,000 and reduced limits on benefits from a defined-benefit plan from $136,425 to $90,000. .

1983 - **SOCIAL SECURITY AMENDMENT ACT of 1983 PASSES. THIS DRASTICALLY ACCELERATES THE SCHEDULE OF TAX HIKES IN SOCIAL SECURITY ORIGINALLY PASSED IN 1977. THE SCHEDULE IS TO BE COMPLETED BY 1990 INSTEAD OF THE YEAR 2030.** .

1984 - The Deficit Reduction Act of 1984 (DEFRA) passes. A repeal, Beginning in 1985, of the provision that allowed an exclusion from income tax of 15 percent of up to $3,000 in interest income for a single taxpayer ($6,000 for couples). A $2 PER GALLON INCREASE IN THE EXCISE TAX ON ALCOHOL AND A ONE-YEAR EXTENSION OF THE 3 PERCENT TELEPHONE EXCISE TAX. An increase in the minimum recovery period for real property from 15 to 18 years. A REDUCTION IN THE HOLDING PERIOD FOR LONG TERM CAPITAL GAINS FROM ONE YEAR TO SIX MONTHS FOR FOR ASSETS ACQUIRED BETWEEN JUNE 1984 AND JANUARY 1988. .

1986 - The Tax Reform Act of 1986 passes. A reduction in the number of individual income tax brackets to two - 15 percent and 28 percent. Increases in the zero bracket amount and personal exemptions. Repeal of the two-earner deduction, income averaging, and the state and local sales tax deduction. Repeal of the 60 percent capital gains exclusion for individuals. Reduction in the maximum corporate income tax rate from 46 percent to 34 percent. Broadening of the corporate tax base through repeal of the investment tax credit, limiting depreciation deductions, restricting the use of net operating losses, etc. Capital gains, top rate: 28 percent. Corporate tax: from 46 to 34 percent. .

The shift in taxation from higher incomes -- incomes from rent -- to income from wages and to taxes on consumption is strikingly obvious to even the most tunnel visioned supporter of aristocratic privilege. Obvious to even the most brain dead trained seal "economist".

In the promotion of the American Aristocracy it is important to understand that if the creation of Real Capital can be throttled and if population can be increased, then the power of the aristocracy will grow significantly faster. If the financial power vested in the rentier by virtue of tax relief was devoted to the development of Real Capital then the improvements in productivity while holding population constant might have been so great as to cut the work week in half. This is the very last thing that the aristocracy would want. Such a situation diminishes the power of the aristocracy. If people can make their way by serving themselves as opposed to serving the rentier, then the rentier will be left without income and comparative opulence. For the aristocracy and the rentier it is the comparative income and opulence that is important. The power to command the labor of others and to extract every morsel of wealth that might allow the wage earner to become an owner of assets , the absolute protection of current station and privilege. So by simply burning the actual output of the economy in the military and law enforcement furnace that protects the property rights of the current aristocracy, the aristocracy assures its continued dominance.