SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : PRESIDENT GEORGE W. BUSH
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tom Clarke who wrote (24354)7/13/2000 11:52:41 AM
From: nihil  Read Replies (1) of 769670
 
If Neocon refuses to answer, I'll be glad to. Except in wartime, the Federal revenue was mostly duties on imports. While we often were thought to have a protective tariff, on the whole it didn't work and became a revenue tariff. Jackson paid off the national debt as a result of the "tariff of abominations" and had to start a subtreasury system to store the surplus after deauthorizing the Band of the United States. Money was given back to the states. The government also sold a lot of land for cash (specie circular). This sound finance led inexorably to the Panic of 1837 in which many states were essentially bankrupt.
During the Civil War, the U.S. issued large numbers of Greenbacks (not gold backed). Started the National Bank System which required backing of bank notes with U.S. Bonds. We paid for the war mostly by borrowing. And adopted an income tax!
After the war we returned to deflationary finance and eventually returned to a gold standard in 1873 (another big depression). High tariffs continued to prevail. In 1894, under the Democratic Wilson Tariff, the income tax was adopted to finance reduction of duties.
Because of the direct taxation provisions of the Constitution which required direct taxes to be allocated among the states in proportion to population, writing income tax laws was difficult and the laws were invalidated by the Supreme years after they had done the job. The 16th Amendment did the legalizing job just in time to allow for big tax increases during WWI.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News