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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Tom Clarke who wrote (24522)	7/14/2000 8:14:12 AM
From: DMaA	Read Replies (2) \| Respond to of 769670

It was sold as a tax on the rich. The sheeple bought it, thought they could stick it to those dirty rich guys and get something for nothing to boot. Incredibly, this basic lie is still effective today even though the sheple now work three hours every day for the government. It certainly doesn't seem to have been in the best interest of the American people.

To: Tom Clarke who wrote (24522)	7/14/2000 9:16:27 AM
From: Father Terrence	Read Replies (1) \| Respond to of 769670

It was strong because it strengthened the power of the federalists and promised the potential of HUGE power to the legislative branch of government in the future. A power they are wielding today to the detriment of individual liberty. What is more important? Federal power or individual liberty? You know my answer... I wonder why the desire to replace the tariff (an external tax) with an internal tax was so strong.

To: Tom Clarke who wrote (24522)	7/14/2000 12:27:02 PM
From: nihil	Respond to of 769670

It was a matter primarily of income distribution. Until WWII, income taxes were limited to a few percent of the richest people. As I recall, the 1894 income tax applied only to income over $4000 and was 2 percent. In contrast, duties affected everyone who bought imported goods. Economists opposed high duties as a matter of policy because they, and probably only they, understood that duties led to resource missallocation (e.g. substituting inferior domestic capital goods for world class imported goods rails, armor, specialty steels, mqchinery) and prevented the importation of cheap clothes and food which particularly injured the poor. The Wilson Tariff was Cleveland's tariff and was considered very progressive for the time. It included an provision (still in the law) attacking foreign firm conspiracies that adversely affected American foreign trade.