Revenue Act of 1913
The Revenue Act of 1913 known as the Underwood Tariff or the Underwood-Simmons Act, re-established a federal income tax in the United States and lowered tariff rates. The act was sponsored by Representative Oscar Underwood, passed by the 63rd United States Congress, signed into law by President Woodrow Wilson. Wilson and other members of the Democratic Party had long seen high tariffs as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office. Following the ratification of the Sixteenth Amendment in 1913, Democratic leaders agreed to seek passage of a major bill that would lower tariffs and implement an income tax. Underwood shepherded the revenue bill through the House of Representatives, but the bill won approval in the United States Senate only after extensive lobbying by the Wilson administration. Wilson signed the bill into law on October 3, 1913; the Revenue Act of 1913 lowered average tariff rates from 40 percent to 26 percent.
It established a one percent tax on income above $3,000 per year. A separate provision established a corporate tax of one percent, superseding a previous tax that had only applied to corporations with net incomes greater than $5,000 per year. Though a Republican-controlled Congress would raise tariff rates, the Revenue Act of 1913 marked an important shift in federal revenue policy, as government revenue would rely on income taxes rather than tariff duties. Democrats had long seen high tariff rates as equivalent to unfair taxes on consumers, tariff reduction was President Wilson's first priority upon taking office, he argued that the system of high tariffs "cuts us off from our proper part in the commerce of the world, violates the just principles of taxation, makes the government a facile instrument in the hands of private interests." While most Democrats were united behind a decrease in tariff rates, most Republicans held that high tariff rates were useful for protecting domestic manufacturing and factory workers against foreign competition.
Shortly before Wilson took office, the Sixteenth Amendment, proposed by Congress in 1909 during a debate over tariff legislation, was ratified by the requisite number of states. Following the ratification of the Sixteenth Amendment, Democratic leaders agreed to attach an income tax provision to their tariff reduction bill to make up for lost revenue, to shift the burden of funding the government towards the high earners that would be subject to the income tax. By late May 1913, House Majority Leader Oscar Underwood had passed a bill in the House that cut the average tariff rate by 10 percent. Underwood's bill, which represented the largest downward revision of the tariff since the Civil War, aggressively cut rates for raw materials, goods deemed to be "necessities," and products produced domestically by trusts, but it retained higher tariff rates for luxury goods; the bill instituted a tax on personal income above $4,000. Passage of Underwood's tariff bill in the Senate would prove more difficult than in the House because some Southern and Western Democrats favored the continued protection of the wool and sugar industries, because Democrats had a narrower majority in that chamber.
Seeking to marshal support for the tariff bill, Wilson met extensively with Democratic senators and appealed directly to the people through the press. After weeks of hearings and debate and Secretary of State William Jennings Bryan managed to unite Senate Democrats behind the bill; the Senate voted 44 to 37 in favor of the bill, with only one Democrat voting against it and only one Republican, progressive leader Robert M. La Follette Sr. voting for it. Wilson signed the Revenue Act of 1913 into law on October 3, 1913; the Revenue Act of 1913 reduced the average import tariff rates from 40 percent to 26 percent. The Act established the lowest rates since the Walker Tariff of 1857. Most schedules were a percentage of the value of the item; the duty on woolens went from 56% to 18.5%. Steel rails, raw wool, iron ore, agricultural implements now had zero rates; the reciprocity program wanted by the Republicans was eliminated. Congress rejected proposals for a tariff board to fix rates scientifically, but it set up a study commission.
The Underwood-Simmons measure vastly increased the free list, adding woolens, steel, farm machinery, many raw materials and foodstuffs. The average rate was 26%; the Revenue Act of 1913 restored a federal income tax for the first time since 1872. The federal government had adopted an income tax in the Wilson–Gorman Tariff Act, but that tax had been struck down by the Supreme Court in the case of Pollock v. Farmers' Loan & Trust Co; the Revenue Act of 1913 imposed a one percent tax on incomes above $3,000, with a top tax rate of six percent on those earning more than $500,000 per year. Three percent of the population was subject to the income tax; the bill included a one percent tax on the net income of all corporations, superseding a previous federal tax that had only applied to corporate net incomes above $5,000. The Supreme Court upheld the constitutionality of the income tax in the cases of Brushaber v. Union Pacific Railroad Co. and Stanton v. Baltic Mining Co. A normal income tax and an additional tax were levied against the net income of individuals, as shown in the following table: There was an exemption of $3,000 for single filers and $4,000 for married couples.
Therefore, the 1% bottom marginal rate applied only to the first $17,000 of income for single filers or the first $16,000 ($352,300 in
United States Statutes at Large
The United States Statutes at Large referred to as the Statutes at Large and abbreviated Stat. are an official record of Acts of Congress and concurrent resolutions passed by the United States Congress. Each act and resolution of Congress is published as a slip law, classified as either public law or private law, designated and numbered accordingly. At the end of a Congressional session, the statutes enacted during that session are compiled into bound books, known as "session law" publications; the session law publication for U. S. Federal statutes is called the United States Statutes at Large. In that publication, the public laws and private laws are numbered and organized in chronological order. U. S. Federal statutes are published in a three-part process, consisting of slip laws, session laws, codification. Large portions of public laws are enacted as amendments to the United States Code. Once enacted into law, an Act will be published in the Statutes at Large and will add to, modify, or delete some part of the United States Code.
Provisions of a public law that contain only enacting clauses, effective dates, similar matters are not codified. Private laws are not codified; some portions of the United States Code have been enacted as positive law and other portions have not been so enacted. In case of a conflict between the text of the Statutes at Large and the text of a provision of the United States Code that has not been enacted as positive law, the text of the Statutes at Large takes precedence. Publication of the United States Statutes at Large began in 1845 by the private firm of Little and Company under authority of a joint resolution of Congress. During Little and Company's time as publisher, Richard Peters, George Minot, George P. Sanger served as editors. In 1874, Congress transferred the authority to publish the Statutes at Large to the Government Printing Office under the direction of the Secretary of State. Pub. L. 80–278, 61 Stat. 633, was enacted July 30, 1947 and directed the Secretary of State to compile, edit and publish the Statutes at Large.
Pub. L. 81–821, 64 Stat. 980, was enacted September 23, 1950 and directed the Administrator of General Services to compile, edit and publish the Statutes at Large. Since 1985 the Statutes at Large have been prepared and published by the Office of the Federal Register of the National Archives and Records Administration; until 1948, all treaties and international agreements approved by the United States Senate were published in the set, but these now appear in a publication titled United States Treaties and Other International Agreements, abbreviated U. S. T. In addition, the Statutes at Large includes the text of the Declaration of Independence, Articles of Confederation, the Constitution, amendments to the Constitution, treaties with Indians and foreign nations, presidential proclamations. Sometimes large or long Acts of Congress are published as their own "appendix" volume of the Statutes at Large. For example, the Internal Revenue Code of 1954 was published as volume 68A of the Statutes at Large.
Revised Statutes of the United States Procedures of the United States Congress Enrolled Bill Federal Register United States Reports California Statutes Laws of Florida Laws of Illinois Laws of New York Laws of Pennsylvania This article incorporates public domain material from websites or documents of the U. S. Government Publishing Office. How Our Laws Are Made, by the Parliamentarian of the House of Representatives. Volumes 1 to 18 of the Statutes at Large made available by the Library of Congress Volumes 1 to 64 of the Statutes at Large made available by the Congressional Data Coalition via LEGISWORKS.org Volumes 65 to 125 of the Statutes at Large made available by the GPO and the Library of Congress via FDsys Sortable by Bills Enacted into Laws, Concurrent Resolutions, Popular Names, Presidential Proclamations, or Public Laws. Volumes 1–124 of the Statutes at Large made available by the Constitution Society Public and private laws from 104th Congress to present from the Government Printing Office, in slip law format with Statutes at Large page references Early United States Statutes includes Volumes 1 to 44 of the Statutes at Large in DjVu and PDF format, along with rudimentary OCR of the text.
United States Statutes and the United States Code: Historical Outlines, Lists and Sources from the Law Librarians' Society of Washington, DC Second Edition of the Revised Statutes of the United States
Revenue Act of 1926
The United States Revenue Act of 1926, 44 Stat. 9, reduced inheritance and personal income taxes, cancelled many excise imposts, eliminated the gift tax and ended public access to federal income tax returns. Passed by the 69th Congress, it was signed into law by President Calvin Coolidge; the act was applicable to incomes for 1925 and thereafter. A rate of 13.5 percent was levied on the net income of corporations. A normal tax and a surtax were levied against the net income of individuals as shown in the following table. Exemption of $1,500 for single filers and $3,500 for married couples and heads of family. A $400 exemption for each dependent under 18
United States congressional apportionment
United States congressional apportionment is the process by which seats in the United States House of Representatives are distributed among the 50 states according to the most recent decennial census mandated by the United States Constitution. Each state is apportioned a number of seats which corresponds to its share of the aggregate population of the 50 states. However, every state is constitutionally guaranteed at least one seat; the number of voting seats in the House of Representatives has since 1913 been 435, capped at that number by the Reapportionment Act of 1929—except for a temporary increase to 437 when Alaska and Hawaii were admitted into the Union. The size of a state's total congressional delegation determines the size of its representation in the U. S. Electoral College, which affects the U. S. presidential election process. Article One, Section 2, Clause 3 of the United States Constitution provided: Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, excluding Indians not taxed, three fifths of all other Persons.
The Number of Representatives shall not exceed one for every thirty Thousand, but each State shall have at least one Representative. But when the right to vote at any election for the choice of electors for President and Vice-President of the United States, Representatives in Congress, the Executive and Judicial officers of a State, or the members of the Legislature thereof, is denied to any of the male inhabitants of such State, being twenty-one years of age, citizens of the United States, or in any way abridged, except for participation in rebellion, or other crime, the basis of representation therein shall be reduced in the proportion which the number of such male citizens shall bear to the whole number of male citizens twenty-one years of age in such State. Reapportionments occur following each decennial census, though the law that governs the total number of representatives and the method of apportionment to be carried into force at that time are enacted prior to the census; the decennial apportionment determines the size of each state's representation in the U.
S. Electoral College. Under Article II, Section 1, Clause 2 of the U. S. Constitution, the number of electors of any state equals the size of its total congressional delegation. Federal law requires the Clerk of the House of Representatives to notify each state government no than January 25 of the year following the census of the number of seats to which it is entitled. If the number of seats has changed, the state determines the boundaries of congressional districts—geographical areas within the state of equal population—in a process called redistricting. Any citizen of the State can challenge the constitutionality of the redistricting in their US district court; because the deadline for the House Clerk to report the results does not occur until the following January, the states need sufficient time to perform the redistricting, the decennial census does not affect the elections that are held during that same year. For example, the electoral college apportionment during 2000 presidential election was still based on the 1990 census results.
The congressional districts and the electoral college during the 2020 general elections will still be based on the 2010 census. The size of the U. S. House of Representatives refers to total number of congressional districts into which the land area of the United States proper has been divided; the number of voting representatives is set at 435. There are an additional five delegates to the House of Representatives, they represent the District of Columbia and the territories of American Samoa, the Northern Mariana Islands, which first elected a representative in 2008, the U. S. Virgin Islands. Puerto Rico elects a resident commissioner every four years. Since 1789, when the Federal Government began operating under the Constitution, the number of citizens per congressional district has risen from an average of 33,000 in 1790 to 700,000 as of 2008. Prior to the 20th century, the number of representatives increased every decade as more states joined the union, the population increased; the ideal number of members has been a contentious issue since the country's founding.
George Washington agreed that the original representation proposed during the Constitutional Convention was inadequate and supported an alteration to reduce that number to 30,000. This was the only time that Washington pronounced an opinion on any of the actual issues debated during the entire convention. In Federalist No. 55, James Madison argued that the size of the House of Representatives has to balance the ability of the body to legislate with the need for legislators to have a relationship close enough to the people to understand their local circumstances, that such representatives' social class be low enough to sympathize with the feelings of the mass of the people, that their power be diluted enough to limit their abuse of the public trust and interests.... First, that so small a number of representatives will be an unsafe depositary of the public interests.
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with resistance to taxation, is punishable by law. Taxes may be paid in money or as its labour equivalent. Most countries have a tax system in place to pay for public, common or agreed national needs and government functions; some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based on annual income amounts. Most countries charge a tax both on corporate income and dividends. Countries or subunits also impose wealth taxes, property taxes, sales taxes, value-added taxes, payroll taxes or tarrifs; the legal definition, the economic definition of taxes differ in some ways such as economists do not regard many transfers to governments as taxes. For example, some transfers to the public sector are comparable to prices. Examples include, tuition at public universities, fees for utilities provided by local governments.
Governments obtain resources by "creating" money and coins, through voluntary gifts, by imposing penalties, by borrowing, by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector, levied on a basis of predetermined criteria and without reference to specific benefit received. In modern taxation systems, governments levy taxes in money; the method of taxation and the government expenditure of taxes raised is highly debated in politics and economics. Tax collection is performed by a government agency such as the Ghana Revenue Authority, Canada Revenue Agency, the Internal Revenue Service in the United States, Her Majesty's Revenue and Customs in the United Kingdom or Federal Tax Service in Russia; when taxes are not paid, the state may impose civil penalties or criminal penalties on the non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing or to alter prices in order to affect demand.
States and their functional equivalents throughout history have used money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure, scientific research and the arts, public works, data collection and dissemination, public insurance, the operation of government itself. A government's ability to raise taxes is called its fiscal capacity; when expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts. Governments use taxes to fund welfare and public services; these services can include education systems, pensions for the elderly, unemployment benefits, public transportation. Energy and waste management systems are common public utilities. According to the proponents of the chartalist theory of money creation, taxes are not needed for government revenue, as long as the government in question is able to issue fiat money. According to this view, the purpose of taxation is to maintain the stability of the currency, express public policy regarding the distribution of wealth, subsidizing certain industries or population groups or isolating the costs of certain benefits, such as highways or social security.
Effects can be divided in two fundamental categories: Taxes cause an income effect because they reduce purchasing power to taxpayers. Taxes cause a substitution effect when taxation causes a substitution between taxed goods and untaxed goods. If we consider, for instance, two normal goods, x and y, whose prices are px and py and an individual budget constraint given by the equation xpx + ypy = Y, where Y is the income, the slope of the budget constraint, in a graph where is represented good x on the vertical axis and good y on the horizontal axes, is equal to -py/px; the initial equilibrium is in the point, in which budget constraint and indifference curve are tangent, introducing an ad valorem tax on the y good, the budget constraint's slope becomes equal to -py/px. The new equilibrium is now in the tangent point with a lower indifferent curve; as can be noticed the tax's introduction causes two consequences: It changes the consumers' real income It raises the relative price of y good. The income effect shows the variation of y good quantity given by the change of real income.
The substitution effect shows the variation of y good determined by relative prices' variation. This kind of taxation can be considered distortionary. Another example can be the Introduction of an income lump-sum tax, with a parallel shift downward of the budget constraint, can be produced a higher revenue with the same loss of consumers' utility compared with the property tax case, from another point of view, the same revenue can be produced with a lower utility sacrifice; the lower utility or the lower revenue given by a distortionary tax are called excess pressure. The same result, reached with an income lump-sum tax, can be obtained with these following types of taxes (all of them cause only a budget constraint's shift without causi
John Calvin Coolidge Jr. was an American politician and lawyer who served as the 30th president of the United States from 1923 to 1929. A Republican lawyer from New England, born in Vermont, Coolidge worked his way up the ladder of Massachusetts state politics becoming governor, his response to the Boston Police Strike of 1919 thrust him into the national spotlight and gave him a reputation as a man of decisive action. The next year, he was elected vice president of the United States, he succeeded to the presidency upon the sudden death of Warren G. Harding in 1923. Elected in his own right in 1924, he gained a reputation as a small government conservative and as a man who said little and had a rather dry sense of humor. Coolidge restored public confidence in the White House after the scandals of his predecessor's administration, left office with considerable popularity; as a Coolidge biographer wrote: "He embodied the spirit and hopes of the middle class, could interpret their longings and express their opinions.
That he did represent the genius of the average is the most convincing proof of his strength". Scholars have ranked Coolidge in the lower half of those presidents, he is praised by advocates of smaller government and laissez-faire economics, while supporters of an active central government view him less favorably, though most praise his stalwart support of racial equality. John Calvin Coolidge Jr. was born in Plymouth Notch, Windsor County, Vermont, on July 4, 1872, the only US president to be born on Independence Day. He was the elder of the two children of John Calvin Coolidge Sr. and Victoria Josephine Moor. Coolidge Junior was called by his middle name, Calvin. Coolidge Senior engaged in many occupations and developed a statewide reputation as a prosperous farmer and public servant, he held various local offices, including justice of the peace and tax collector and served in the Vermont House of Representatives as well as the Vermont Senate. Coolidge's mother was the daughter of a Plymouth Notch farmer.
She was chronically ill and died from tuberculosis, when Coolidge was twelve years old. His younger sister, Abigail Grace Coolidge, died at the age of 15 of appendicitis, when Coolidge was 18. Coolidge's father married a Plymouth schoolteacher in 1891, lived to the age of 80. Coolidge's family had deep roots in New England. Another ancestor, Edmund Rice, arrived at Watertown in 1638. Coolidge's great-great-grandfather named John Coolidge, was an American military officer in the Revolutionary War and one of the first selectmen of the town of Plymouth, his grandfather Calvin Galusha Coolidge served in the Vermont House of Representatives. Coolidge was a descendant of Samuel Appleton, who settled in Ipswich and led the Massachusetts Bay Colony during King Philip's War. Coolidge attended Black River Academy and St. Johnsbury Academy, before enrolling at Amherst College, where he distinguished himself in the debating class; as a senior, he graduated cum laude. While at Amherst, Coolidge was profoundly influenced by philosophy professor Charles Edward Garman, a Congregational mystic, with a neo-Hegelian philosophy.
Coolidge explained Garman's ethics forty years later: here is a standard of righteousness that might does not make right, that the end does not justify the means, that expediency as a working principle is bound to fail. The only hope of perfecting human relationships is in accordance with the law of service under which men are not so solicitous about what they shall get as they are about what they shall give, yet people are entitled to the rewards of their industry. What they earn is theirs, no matter how small or how great, but the possession of property carries the obligation to use it in a larger service... At his father's urging after graduation, Coolidge moved to Northampton, Massachusetts to become a lawyer. To avoid the cost of law school, Coolidge followed the common practice of apprenticing with a local law firm, Hammond & Field, reading law with them. John C. Hammond and Henry P. Field, both Amherst graduates, introduced Coolidge to law practice in the county seat of Hampshire County.
In 1897, Coolidge was admitted to the Massachusetts bar. With his savings and a small inheritance from his grandfather, Coolidge opened his own law office in Northampton in 1898, he practiced commercial law. As his reputation as a hard-working and diligent attorney grew, local banks and other businesses began to retain his services. In 1903, Coolidge met Grace Anna Goodhue, a University of Vermont graduate and teacher at Northampton's Clarke School for the Deaf, they married on October 4, 1905 at 2:30 p.m. in a small ceremony which took place in the parlor of Grace's family's house, following a vain effort at postponement by Grace's mother. The newlyweds went on a honeymoon trip to Montreal planned for two weeks but cut short by a week at Coolidge's request. After 25 years he wrote of Grace, "for a quarter of a century she has borne with my infirmities and I have rejoiced in her graces"; the Coolidges had two sons: John and Calvin Jr.. Calvin Jr. died at age 16 from blood poisoning. On June 30, 1924 Calvin Jr had played tennis with his brother on the White House tennis courts without putting on socks and developed a blister on one of his toes.
The blister subsequently
Economic Recovery Tax Act of 1981
The Economic Recovery Tax Act of 1981 known as the ERTA or "Kemp–Roth Tax Cut", was a federal law enacted by the 97th United States Congress and signed into law by President Ronald Reagan. The act was a major tax cut designed to encourage economic growth. Republican Congressman Jack Kemp and Republican Senator William Roth had nearly won passage of a tax cut during the presidency of Jimmy Carter, Reagan made a major tax cut his top priority upon taking office. Though Democrats maintained a majority in the House of Representatives during the 97th Congress, Reagan was able to convince conservative Democrats like Phil Gramm to support the bill. ERTA passed Congress on August 4, 1981, was signed into law on August 13, 1981. ERTA was one of the largest tax cuts in U. S. history, ERTA and the Tax Reform Act of 1986 are known together as the Reagan tax cuts. Along with spending cuts, Reagan's tax cuts were the centerpiece of what some contemporaries described as the conservative "Reagan Revolution."
Included in the act was an across-the-board decrease in federal income tax rates. The top marginal tax rate fell from 70 percent to 50 percent, the bottom rate dropped from 14 percent to 11 percent. To prevent future bracket creep, the new tax rates were indexed for inflation. ERTA slashed estate taxes, capital gains taxes, corporate taxes. Critics of the act claim that it worsened federal budget deficits, while supporters credit it for bolstering the economy during the 1980s. Due to deficit concerns in the midst of the early 1980s recession, many of the cuts implemented by ERTA were rescinded by the Tax Equity and Fiscal Responsibility Act of 1982; the Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows: phased-in 23% cut in individual tax rates over 3 years. The maximum expense in calculating credit was increased from $2000 to $2400 for one child and from $4000 to $4800 for two or more kids; the credit increased from a maximum of $400 or $800 to 30 % of $10,000 income or less.
The 30% credit is diminished by 1% for every $2,000 of earned income up to $28000. At $28000, the credit for earned income is 20%; the amount a married taxpayer who files a join return increased under the Economic Recovery Tax Act to $125,000 from $100,000, allowed under the 1976 Act. A single person is limited to an exclusion of $62,500, it increases the amount of a one time exclusion of gain realized on the sale of principal residence by a persons at least 55 years old. Republican Congressman Jack Kemp and Republican Senator William Roth had nearly won passage of a major tax cut during the presidency of Jimmy Carter, but President Carter had prevented passage of the bill due to concerns about the deficit. Supply-side economics advocates like Kemp and Reagan asserted that cutting taxes would lead to higher government revenue due to economic growth, a proposition, challenged by many economists. Upon taking office, Reagan made the passage of Kemp-Roth bill his top domestic priority; as Democrats controlled the House of Representatives, passage of any bill would require the support of some House Democrats in addition to the support of congressional Republicans.
Reagan's victory in the 1980 presidential campaign had united Republicans around his leadership, while conservative Democrats like Phil Gramm of Texas were eager to back some of Reagan's conservative policies. Throughout 1981, Reagan met with members of Congress, focusing on winning support from conservative Southern Democrats. In July 1981, the Senate voted 89-11 in favor of the tax cut bill favored by Reagan, the House subsequently approved the bill in a 238-195 vote. Reagan's success in passing a major tax bill and cutting the federal budget was hailed as the "Reagan Revolution" by some reporters; the Accelerated Cost Recovery System was a major component of the ERTA and was amended in 1986 to become the Modified Accelerated cost Recovery System. The system changed the way. Instead of basing the depreciation deduction on an estimate of the expected useful life of assets, the assets were placed into categories: 3, 5, 10, or 15 years of life. For example, the agriculture industry saw a re-evaluation of their farming assets.
Items such as automobiles and swine were given 3 year depreciation values, things like buildings and land had a 15-year depreciation value. The idea was that there would be a rise in tax cuts due to the optimistic consideration of depreciating values; this would in turn put more cash into the pockets of business owners to promote investment and economic growth. The most lasting impact and significant change of the Act was the indexing of the tax code parameters for inflation starting in years after 1984. Of the nine federal tax laws between 1968 and this Act, si