Category:History of taxation in the United States
Pages in category "History of taxation in the United States"
The following 13 pages are in this category, out of 13 total, this list may not reflect recent changes (learn more).
The following 13 pages are in this category, out of 13 total, this list may not reflect recent changes (learn more).
1. Taxation history of the United States – The history of taxation in the United States begins with the colonial protest against British taxation policy in the 1760s, leading to the American Revolution. The independent nation collected taxes on imports, whiskey, and on glass windows, States and localities collected poll taxes on voters and property taxes on land and commercial buildings. There are state and federal excise taxes, state and federal inheritance taxes began after 1900, while the states began collecting sales taxes in the 1930s. The United States imposed income taxes briefly during the Civil War and the 1890s, there have been no export taxes, taxes on trade between states, or taxes on charities and religious bodies, and no value added tax. Taxes were low at the local, colonial and imperial levels throughout the colonial era, the issue that led to the Revolution was whether parliament had the right to impose taxes on the Americans when they were not represented in parliament. The exact date the Act was enacted was on November 1,1765, the Act was enacted in order to defray the cost of maintaining the military presence protecting the colonies. Americans rose up in strong protest, arguing in terms of No Taxation without Representation, boycotts forced Britain to repeal the stamp tax, while convincing many British leaders it was essential to tax the colonists on something in order to demonstrate the sovereignty of Parliament. The Townshend Revenue Act were two tax laws passed by Parliament in 1767, they were proposed by Charles Townshend, Chancellor of the Exchequer and they placed a tax on common products imported into the American Colonies, such as lead, paper, paint, glass, and tea. In contrast to the Stamp Act of 1765, the laws were not a tax that people paid daily. The Townshend Acts also created three new admiralty courts to try Americans who ignored the laws, the tax on sugar, cloth and coffee. The Tea Act of 1773 received the royal assent on May 10,1773 and this act was a drawback on duties and tariffs on tea. The act was designed to undercut tea smugglers to the benefit of the East India Company, the Boston Tea Party was an act of protest by the American colonists against Great Britain for the Tea Act in which they dumped many chests of tea into Boston Harbor. The cuts to taxation on tea undermined American smugglers, who destroyed the tea in retaliation for its exemption from taxes, Britain reacted harshly, and the conflict escalated to war in 1775. Tariffs have played different roles in trade policy and the history of the United States. Tariffs were the largest source of revenue from the 1790s to the eve of World War I. Since the revenue from the tariff was considered essential and easy to collect at the major ports, another role the tariff played was in the protection of local industry, it was the political dimension of the tariff. From the 1790s to the present day, the tariff generated enormous political stresses and these stresses lead to the Nullification crisis during the 19th century, and the creation of the WTO. This resulted in the passage of three tariffs by Congress, the Tariff of 1789, the Tariff of 1790, and the Tariff of 1792 which progressively increased tariffs, Tariffs contributed to sectionalism between the North and the South
2. Disenfranchisement after the Reconstruction Era – These measures were enacted by former Confederate states at the turn of the 20th century, and by Oklahoma upon statehood, although not by the border slave states. Their actions defied the intent of the Fifteenth Amendment to the United States Constitution, ratified in 1870, after regaining control of the state legislatures, Democrats were alarmed by a late 19th-century alliance between Republicans and Populists that cost them some elections. In North Carolinas Wilmington Insurrection of 1898, white Democrats conducted a coup detat of the city government and they overturned a duly elected biracial government headed by a white mayor, and widely attacked the black community, destroying lives and property. Many blacks left the city permanently and they succeeded in disenfranchising most of the black citizens, as well as many poor whites in the South, and voter rolls dropped dramatically in each state. The Republican Party was nearly eliminated in the region for decades, from the mid to the late 20th century, a wholesale party realignment took place, with white conservatives joining the Republican Party. Until then Southern Democrats controlled the politics of southern states and established white supremacy, as Congressional apportionment of seats was based on the total population, the Southern white Democrats, the Southern bloc, had tremendous legislative power for decades. Section 2 of the Fourteenth Amendment could have used to reduce Congressional representation for states that denied suffrage on racial grounds. Opponents of the Southern bloc could not overcome their political power, in 1912, the Republican Party was split when Roosevelt ran against the regular Taft. In the South by this time, the Republican Party had been hollowed out by the disenfranchisement of African Americans, democrat Woodrow Wilson was elected as the first southern President since 1856. He was re-elected in 1916, in a much closer presidential contest, during World War I, American military forces were segregated, with black soldiers poorly trained and equipped. Disenfranchisement had far-reaching effects in Congress, where the Democratic Solid South enjoyed about 25 extra seats in Congress for each decade between 1903 and 1953, also, the Democratic dominance in the South meant that southern Senators and Representatives became entrenched in Congress. In addition, because black Southerners were not listed on local voter rolls, juries were all white across the South. Racial segregation in the U. S. military was ended in 1948 by Executive Order of President Harry S. Truman after World War II, legal racial segregation in the South did not end until after passage of the Civil Rights Act of 1964. The American Civil War ended in 1865, marking the start of the Reconstruction era in the eleven former Confederate states, Congress passed the Reconstruction Acts, starting in 1867, establishing military districts to oversee the affairs of these states pending reconstruction. Southern whites, fearing black domination, resisted the freedmens exercise of political power, in 1867, black men voted for the first time. By the 1868 presidential election, Texas, Mississippi, and Virginia had still not been re-admitted to the Union, General Ulysses S. Grant was elected as president thanks in part to 700,000 black voters. In February 1870, the Fifteenth Amendment was ratified, it was designed to protect blacks right to vote from infringement by the states, the insurgent Ku Klux Klan was formed in 1865 in Tennessee and quickly became a powerful secret vigilante group, with chapters across the South. The Klan initiated a campaign of intimidation directed against blacks and sympathetic whites and their violence included vandalism and destruction of property, physical attacks and assassinations, and lynchings
3. Poll taxes in the United States – In the United States, payment of a poll tax was a prerequisite to the registration for voting in a number of states until 1966. The tax emerged in some states of the United States in the late 19th century as part of the Jim Crow laws. The laws often included a clause, which allowed any adult male whose father or grandfather had voted in a specific year prior to the abolition of slavery to vote without paying the tax. Proof of payment of a tax was a prerequisite to voter registration in Florida, Alabama, Tennessee, Arkansas, Louisiana, Mississippi, Georgia, North and South Carolina, Virginia. The Texas poll tax required otherwise eligible voters to pay between $1.50 and $1.75 to register to vote – a lot of money at the time, the poll tax requirements applied to whites as well as blacks, and also adversely affected poor citizens. The laws that allowed the tax did not specify a certain group of people. This meant that anyone, including white women could also be discriminated against when they went to vote, one example is in Alabama where white women were discriminated against and then organized to secure their right to vote. One group of women that did this was Womens Joint Legislative Council of Alabama, African American women also organized in groups against being denied voting rights. One African American woman sued the county with the help of the NAACP and she sued for her right to vote as she was stopped from even registering to vote. As a result of her suing the county the mailman did not deliver her mail for quite some time, many states required payment of the tax at a time separate from the election, and then required voters to bring receipts with them to the polls. If they could not locate such receipts, they could not vote, in addition, many states surrounded registration and voting with complex record-keeping requirements. These were particularly difficult for sharecropper and tenant farmers to comply with, the poll tax was sometimes used alone or together with a literacy qualification. In a kind of grandfather clause, North Carolina in 1900 exempted from the poll tax those men entitled to vote as of January 1,1867 and this excluded all blacks, who did not then have suffrage. Although largely associated with states of the former Confederacy, poll taxes were also in place in northern and western states. For instance, California had a poll tax until 1914 when it was abolished through a popular referendum. In 1937, in Breedlove v. Suttles,302 U. S.277, the case involved the Georgia poll tax of $1. Georgia abolished its tax in 1945. The 24th Amendment, ratified in 1964, abolished the use of the tax as a pre-condition for voting in federal elections
4. Stamp Act 1765 – Printed materials included legal documents, magazines, playing cards, newspapers, and many other types of paper used throughout the colonies. Like previous taxes, the tax had to be paid in valid British currency. The purpose of the tax was to pay for troops stationed in North America after the British victory in the Seven Years War and its North American theater of the French. The Americans said that there was no military need for the soldiers there were no foreign enemies on the continent. They suggested that it was actually a matter of British patronage to surplus British officers, the Stamp Act was very unpopular among colonists. A consensus considered it a violation of their rights as Englishmen to be taxed without their consent—consent that only the colonial legislatures could grant and their slogan was No taxation without representation. Colonial assemblies sent petitions and protests, the Stamp Act Congress held in New York City was the first significant joint colonial response to any British measure, it petitioned Parliament and the King. Local protest groups led by merchants and landowners established connections through Committees of Correspondence. Protests and demonstrations initiated by a new organization called the Sons of Liberty often turned violent. Very soon, all stamp tax distributors were intimidated into resigning their commissions, opposition to the Stamp Act was not limited to the colonies. British merchants and manufacturers, whose exports to the colonies were threatened by colonial boycotts, the Act was repealed on March 18,1766 as a matter of expedience, but Parliament affirmed its power to legislate for the colonies in all cases whatsoever by also passing the Declaratory Act. There followed a series of new taxes and regulations, likewise opposed by the colonists, the British victory in the Seven Years War, known in America as the French and Indian War, had been won only at a great financial cost. During the war, the British national debt increased more than fourfold, the primary reason for retaining such a large force was that demobilizing the army would put 1,500 officers out of work, many of whom were well-connected in Parliament. Stationing 10,000 troops to separate American Indians and frontiersmen was one role, the outbreak of Pontiacs Rebellion in May 1763 apparently reinforced the logic of this decision, as it was an American Indian uprising against the British expansion. The main reason to send 10,000 troops deep into the wilderness was to provide billets for the officers who were part of the British patronage system. John Adams said, Revenue is still demanded from America, and appropriated to the maintenance of swarms of officers and pensioners in idleness and luxury. George Grenville became prime minister in April 1763 after the failure of the short-lived Bute Ministry, raising taxes in Britain was out of the question, since there had been virulent protests in England against the Bute ministrys 1763 cider tax, with Bute being hanged in effigy. The Grenville ministry therefore decided that Parliament would raise revenue by taxing the American colonists without their consent
5. Tariffs in United States history – Graph, Share of tariff revenues in U. S. Federal budget. Tariffs in United States history have played important roles in trade policy, political debates, the main goal of the tariff was money to pay the federal budget. Controversy arose over whether manufacturing interests were favored and consumer interests hurt by high tariffs, the 1st United States Congress, wanting a straightforward tax that was not too onerous and easy to collect, passed the Tariff Act of 1789. Treasury agents collected the tariff before goods could be landed, Tariffs were the largest source of federal revenue until the Federal income tax began after 1913. For well over a century the government was largely financed by tariffs averaging about 20% on foreign imports. There are no tariffs for imports or shipments from other states, since the 1940s, foreign trade policies have focused more on reciprocal tariffs and low tariff rates rather than using tariffs as a significant source of Federal tax revenue. The goal of using higher tariffs to promote industrialization was urged by the first Secretary of the Treasury, Alexander Hamilton and they generally failed because Jeffersonian and Jacksonian Democrats said the tariff should be only high enough to pay the governments bills, otherwise, it would hurt the consumers. The Republicans, however, made high tariffs the centerpiece of their economic policy beginning in 1861, since 1930, tariffs have not been a major political issue. Tariffs were the source of all Federal revenue from 1790 to 1914. At the end of the American Civil War in 1865 about 63% of Federal income was generated by the excise taxes, in 1915 during World War I tariffs generated only 30. 1% of revenues. Since 1935 tariff income has continued to be a percentage of Federal tax income. Constitution of 1789 gave the government authority to tax, stating that Congress has the power to. Lay and collect taxes, duties, imposts and excises, pay the debts and provide for the common defense, and also To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes. Tariffs between states is prohibited by the U. S. Constitution, and all domestically made products can be imported or shipped to another state tax-free. The tariff issue was central to political party debates in the Second Party System, Third Party System and Fourth Party System, in general Democrats favored a tariff that would pay the cost of government, but no higher. Whigs and Republicans favored higher tariffs to encourage or protect industry, Tariffs were generally low before 1860, and high after that. Since the 1930s, however, tariffs have been low and have been much less a matter of partisan debate. It should be noted that the adjacent table determines the average tariff by calculating the ratio of customs duties collected to the value of dutiable *and* duty-free items