In partnership with

*NOTE: Earlier today I launched the DML Health Newsletter. If you did not get it, the link to sign up is down at the bottom of this DML REPORT.

INTERESTING HEADLINES:

1. WARNING.
   Common bedroom item potentially linked to brain damage. MORE DETAILS 

2. AMERICA.
   Former Gov. Cuomo’s chances for NYC mayor in financial limbo. 
   LEARN MORE

3. HEALTH.
   Tech startup introduces Sperm Racing event. KNOW MORE

4. LONGEVITY
   The key health tactic to anti-aging. LEARN MORE.

5. AI
   Physicians explain why AI is needed in their industry more than ever before. Read More.

6. With #5 in mind
   Some say our sponsor offers one of the best free newsletters in the world when it comes to AI. Thus, if you are NOT in the know about AI you will struggle in the months and years to come as it is changing everything. When you click on the safe & no obligation Superhuman AI ad, you help me continue sending my newsletters, you help our sponsor continue to inform, but most importantly, you help yourself by getting the information that is shaping the planet.

Find out why 1M+ professionals read Superhuman AI daily.

In 2 years you will be working for AI

Or an AI will be working for you

Here's how you can future-proof yourself:

1. Join the Superhuman AI newsletter – read by 1M+ people at top companies

2. Master AI tools, tutorials, and news in just 3 minutes a day

3. Become 10X more productive using AI

Join 1,000,000+ pros at companies like Google, Meta, and Amazon that are using AI to get ahead.

Sign up and start learning AI

IF YOU HATE APRIL 15…

The Tax Trap: How America Got Hooked, Who’s to Blame, and a Better Way Forward

I wanted to write about how Obama used the IRS as a weapon of politics, but I opted for something deeper. Instead, let’s talk about how America’s federal income tax wasn’t always the beast it is today. It kicked off in 1861, during the Civil War, when the government was desperate for cash to fund the Union’s fight. President Abraham Lincoln signed the Revenue Act, slapping a 3% tax on incomes between $600 and $10,000 and 5% on anything higher. The idea was simple: war costs money, and citizens had to chip in. This wasn’t a permanent fixture—Congress repealed it in 1872, proving they could let go of power back then. But the real game-changer came in 1913 with the 16th Amendment, championed by President William Howard Taft. It gave Congress the green light to tax incomes without apportioning them among states, bypassing a pesky constitutional roadblock. Why? Progressives argued tariffs and excise taxes hit the poor harder, and a graduated income tax would shift the burden to the wealthy. It started small, targeting less than 1% of the population with a 1% rate on incomes above $3,000, topping out at 7% for the ultra-rich.

Resistance? You bet. 
The early income tax faced pushback from those who saw it as government overreach. In 1895, the Supreme Court even struck down a federal income tax in Pollock v. Farmers’ Loan & Trust Co., calling it unconstitutional without apportionment. That’s why the 16th Amendment had to happen—opponents weren’t just grumbling; they had legal muscle. Fast forward, tax protesters have always existed, from colonial rebels to modern “sovereign citizens,” though most get crushed under the IRS’s boot.

Now, let’s track the tax rates. 
In 1913, the top rate was 7%. World War I jacked it to 77% by 1918 to bankroll the military. Post-war, Republicans under Harding and Coolidge slashed it to 25% by 1925, embracing a smaller-government vibe. The Great Depression and FDR’s New Deal reversed that—Democrats cranked the top rate to 63% in 1932, then 79% by 1936, and a staggering 94% in 1944 to fund World War II. Rates stayed high until Reagan in 1981, a Republican who gutted the top rate to 28% by 1988, arguing it would unleash economic growth. Clinton, a Democrat, bumped it to 39.6% in 1993. Bush Jr. cut it to 35% in 2001, but Obama nudged it back to 39.6% in 2013. Trump’s 2017 Tax Cuts and Jobs Act, another Republican move, lowered the top rate to 37%, where it sits today for incomes over $626,350. The pattern? Republicans tend to cut, Democrats tend to hike, though both sides tinker endlessly.

Who decides where this money goes? 
Congress holds the purse strings, passing budgets that divvy up taxes for defense, healthcare, infrastructure, and more. The President proposes, but Congress disposes, often through backroom deals and lobbyist pressure. The Treasury and IRS collect and enforce, but they don’t dictate spending—politicians do, and they’re not exactly frugal. In 2023, federal spending hit $6.1 trillion, with 43% on Social Security and Medicare alone, 14% on defense, and the rest scattered across programs often bloated with waste.

My solution: If I was the president…
There’s a better way: If I was the president, I would look to scrap the existing code and then allow the American people to vote on which system to implement:

Choice 1: A flat tax.
Choice 2: A consumption tax. 

A flat tax—say, 10% across the board—eliminates brackets, deductions, and loopholes. Everyone pays the same rate, no favoritism. It’s simple, transparent, and fair; a low-income earner keeps more, while the wealthy can’t dodge through tax shelters.

A consumption tax, like a national sales tax, hits spending, not income. Buy a yacht? Pay tax. Live modestly? Pay less. It rewards saving, boosts economic growth, and doesn’t punish ambition. Either option guts the bloated bureaucracy of collecting federal taxes, saving billions. Critics whine it’s regressive, but exemptions for essentials like food and medicine fix that. Both systems empower individuals, not Washington.

Look at countries without federal income tax: 
Monaco, Bermuda, the Bahamas, and Qatar, among others… they thrive on consumption taxes, property taxes, or oil revenue. Monaco’s residents keep every penny of their income, fueling a luxury economy with zero poverty. Bermuda uses payroll and import taxes, maintaining a high standard of living. These nations prove you don’t need to bleed citizens dry to function—they prioritize efficiency and innovation over bloated budgets. The U.S. could learn a thing or two.

The Broken System: Illegals Gaming the Tax Code
Our tax system isn’t just inefficient—it’s a scam magnet, especially for illegal aliens. The IRS is empowered by D.C. to hand out Individual Taxpayer Identification Numbers (ITINs) like candy, letting non-citizens file returns and claim refunds. In 2021, over 4.7 million ITIN filers claimed $5.6 billion in refunds, much of it from the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). These credits, meant for low-income families, don’t verify immigration status. A 2019 report found 1.2 million ITIN filers claimed CTC for kids not even living in the U.S.—pure fraud. One case in Indiana saw an illegal alien claim 20 dependents, pocketing $29,000 in refunds, no questions asked.

Then there’s the EITC, which paid out $66 billion in 2022. Audits show 24% of claims are improper, often tied to ITIN filers inflating income or dependents. Scammers exploit lax enforcement—IRS audits of EITC claims dropped from 1.1 million in 2010 to 300,000 in 2022. Illegal aliens working off-the-books or using stolen Social Security numbers dodge taxes, then file for refunds, double-dipping the system. A 2016 Treasury report admitted $1.7 billion in improper CTC payments went to ineligible filers, many non-residents.

This isn’t just numbers—it’s theft. While citizens grind to pay taxes, illegals exploit loopholes, draining funds meant for Americans. To get this fixed, Republicans and Democrats would have to come together and do what’s right, but the Democrats look the other way for the sake of votes, maybe? A flat or consumption tax would close these gaps—no credits, no ITINs, no fraud. It’s time to stop rewarding lawbreakers and start protecting taxpayers.

The media won’t touch this—they’re too busy pushing false narratives about Trump trying to further enrich billiionaires. But the truth is clear: our tax system is broken, it discourages hard work, and only a radical overhaul will fix it. Demand better, or Washington will keep fleecing us all.

REMINDERS & NOTICES…

1. The DML Health Newsletter launched today, if you did not receive it, go to DMLHealth.com and enter your email.
   

2. Dennis Michael Lynch Podcast: 10am ET. Watch on X, FB, Rumble or TeamDML. Listen on Apple or Spotify.
   
   NOTICE:
   Still running a deal on our coffee mugs. Use coupon code LIFE to save 10% and free shipping. Buy one already so I can fund this newsletter and feed my dog. 😄 

Have a great rest of your day.
Your Friend,
DML

_{DISCLAIMERS: This newsletter is for fun purposes only. I share my opinions. And I am not a doctor or a stock professional, so contact your doctor and financial planner for advice on that kind of stuff. You can unsubscribe at any time by clicking the unsubscribe button below. Links provided may result in you visiting a website that generates income for TeamDML Inc. My wife thanks you for reading my newsletter, writing it keeps me out of her way. Copyright 2025 TeamDML Inc.}