2 jul 1909 año - Element 1 - 16th Constitutional Amendment

Descripción:

OMAHA PLATFORM
Element: #1, Graduated income tax
Location: Finance Platform, #3; Expression of Sentiments #2
Goal/Importance: Graduated income tax used to reduce tax on domestic industries

EVENT
People/Party: U.S. Federal Government
Location: Washington, D.C.
Impact: Passing of Federal Income Tax

DETAILS
The first ever income tax was a "progressive" tax in 1861 when the civil war that began due to Union debt. After the war, the federal government returned to "regressive" tariffs and excise taxes. This worked to the disadvantage of farmers with accusations of government favor towards businesses and allegations of working together against farmers. In 1892, president Grover Cleveland (D) passed restoration of income tax as a "flat tax", although the Supreme Court declared it unconstitutional nearly a year later. The progressive reform movement led congressman Cordell Hull's (D) coalition (D/R) to attach income tax bills to tariff legislation, making it difficult to pass tariffs. Hull then makes a deal with president William Taft (R) to not stall passage of tariffs if Taft favors corporate taxes and drafts a constitutional amendment to enact federal income tax. In 1913, the "progressive" tax is re-instated with the amendment with major success, much to the surprise of opponents.

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