Maybe you will like Lincoln a little bit less after learning that he’s the guy that introduced income tax to the United States.
Wednesday, April 15 is tax day in the United States when day individual tax returns are due. In the early history of America, most revenues were collected from tariffs and duties on liquor, tobacco, sugar, and legal documents.
It wasn’t until the Civil War that an income tax was imposed to help keep the union together and finance the War Between The States. Abraham Lincoln signed the Revenue Act of 1861 which levied a 3% flat rate income tax on those with an annual income of $800 or more. It was repealed and replaced with the Revenue Act of 1862 which implemented a progressive scale of 3% on annual incomes over $600 and 5% on annual incomes above $10,000.
The Revenue Act of 1864, which increased the income tax rates established in 1862, was repealed in 1873. However, Congress established the first peacetime income tax with the Wilson-Gorman Tariff Act of 1894. In 1895 the Supreme Court struck down the income tax provision in Pollock v. Farmers’ Loan & Trust Co., Which was how things remained 1913, when the 16th Amendment permitted a federal income tax again.
This week at the Nyack Library, you can learn some more about Mr. Lincoln — in a less taxing story.
Here’s the week at a glance
at the Nyack Library.
- FREE AARP Tax Aid, bring 2 forms of i.d. – one must be a photo i.d., 10a
- Universal Class: Basic Computers 101, Registration required, 2:30p
- FREE Assistance with NYS Health Insurance Programs, 5p
- Fiction Writers Workshop, Registration required, 11a
- Cuentos, Canciones y Artesania, 1p
- Poetry Bonanza!, Registration required, 4:30p
- Nyack Toastmasters, 6:45p
- Universal Class: Improve Your Memory 101, Registration required, 10a
- Individual Career Counseling Sessions w/Eileen Grimm, 6:30p
- Lincoln’s Assassination Program, Registration required, 7p
- Preschool Block Play, 11a
- Family Book Discussions, Registration required, 6:30p
Teen Choice Movie, 3:30p
Lincoln’s Assassination Program, Wed at 7p
Local historian John Muranelli gives an hour-long talk on the 150th Anniversary of President Abraham Lincoln’s death at the hand of John Wilkes Booth. Muranelli’s research includes visits Ford’s Theater and the National Archives in Washington, DC. and his presentation includes building models, diagrams and photographs.
Kids: Do The Write Thing, Sat at 10:30a
Creative Writing Series for Grades 4 – 6: Do you like to write stories? Work with acclaimed Young Adult author, Carolyn MacCullough, on developing plot and strong characters who come alive on the page. Explore plot twists, use of descriptive language and voice. Guaranteed to spark your creativity.
Must register for series and attend all three sessions. Email Claudia Uccellani or call (845) 358-3370 x228 to register.
Have a question or a fun fact you want to know? We’re looking for suggestions for our weekly Did You Know fact. Write to info@NyackNewsAndViews with your suggestions.
Did You Know comes to you each Monday on NyackNewAndViews, sponsored by the Nyack Library.
Tags:april 15Did you know?income taxinternal revenue serviceirsNyack Library
Presentation on theme: "Tariffs. Tariff of 1789 Description To generate revenue for the young government Gave some protection to “infant industries” Sociopolitical Context Part."— Presentation transcript:
2 Tariff of 1789 Description To generate revenue for the young government Gave some protection to “infant industries” Sociopolitical Context Part of Hamilton’s financial plan Beginning of protectionism Protectionism focused on New England (where the industry was) Rate = 8%
3 Tariff of 1816 Description First truly “protective” tariff Supported by both Clay and Calhoun as a part of the American System Sociopolitical Context Reaction against massive influx of British goods on American economy after War of 1812 ended Southerners opposed Rate = 20%
4 Tariff of 1824 Description Rates continue to rise Sociopolitical Context North and West got together to pass despite Southern protests More and more opposition from the South Rate = 30%
5 Tariff of 1828 “Tariff of Abominations” Description Even higher protective rates All about protection for Northern Industries Sociopolitical Context South HATED it Calhoun hated it JQA caught in “trick” by Jacksonites in the West that ended up backfiring on Jackson Rate = 53%
6 Tariff of 1832 Description Returned tariff to 1824 levels Sociopolitical Context Not enough moderation for the South Led to Calhoun’s “South Carolina Exposition and Protest” and nullification crisis Rate = 30%
7 Tariff of 1833 Description Clay compromise tariff Gradually reduced rates back to 1816 level Sociopolitical Context Previous to passage Jackson sent troops to S.C. to forcibly collect 1832 tariff rates (Force Bill) New England opposed Clay’s attempt to win Southern support Rate = slowly declining
8 Tariff of 1842 Description Tyler’s reluctant revision that stopped the rate cuts Sociopolitical Context Caused by prolonged economic depression after the Panic of 1837 Angered the Whigs and led to their unsuccessful attempt to impeach Tyler Rate = back to 30%
9 Walker Tariff (1846) Description Lowered the tariff because Democrats controlled Congress Move away from protectionism and towards revenue Sociopolitical Context Congress controlled by Democrats West abandoned high tariff in hopes of regaining foreign markets New England mad Rate = Lowered
10 Tariff of 1857 Description Lowered rates to very low levels Sociopolitical Context Caused by Panic of 1857, which depressed international trade Tried to get the economy picked up with increased trade South very happy; not hurt by the Panic, which led to overconfidence in cotton on the eve of war Rate = 20%
11 Civil War Tariffs (1861-1865) Description “While the cat is away the mice will play.” Steadily increased tariff rates Sociopolitical Context Southern Democrats were not represented in Congress, so Northern and Southern Republicans raised rates for protectionism purposes Rate = 47% by end of war
12 Tariff of 1872 Description Reduced rates on certain manufactured goods Sociopolitical Context Post-war reform Rate =
13 Tariff of 1875 Description Continued lowering of tariff rates by about 10% Sociopolitical Context Rate =
14 “Mongrel” Tariff (1883) Description Railroaded in Congress Raised rates on most manufactured goods Sociopolitical Context Arthur’s administration proposed effective ways to lower the tariff, but Congress ignored them Rate =
15 McKinley Tariff (1890) Description Highest protective tariff to date Sociopolitical Context Supported by West and South as a part of a compromise to get Sherman Silver Purchase Act passed as well (because North didn’t like this Populist measure) Led to defeat of many Congressmen who had voted for it Rate = 48%
16 Wilson-Gorman Tariff (1894) Description Railroaded tariff that only lowered rates a few percent 600 amendments from the Senate 40% on foreign sugar Added 2% income tax (pro-Populist) to make up for lost revenue Sociopolitical Context Income tax remained but Supreme Court declared it unconstitutional, leading Populists to see a business / judicial conspiracy Cleveland’s lack of involvement in stopping the railroading led to his declining popularity Rate = about 46%
17 Dingley Tariff (1897) Description Highest tariff to date Blatantly protectionist Sociopolitical Context Passed due to aggressive campaigning by Northern Republicans Spanish-American war usually seen as diversion from hugely unpopular tariff Rate = Average = 49%; highest rates at 57%
18 Payne-Aldrich Tariff (1909) Description Railroaded bill that was supposed to lower rates more than it did Lower, but still protectionist Sociopolitical Context Taft signed it, which led many Progressives to feel abandoned Furthered the growing split in the Republican party (which led to Wilson’s election) Rate = 41%
19 Underwood Tariff (1913) Description First meaningful tariff reform since before the Civil War Included an income tax provision to make up for lost revenue –16 th Amendment so Supreme Court couldn’t overturn Sociopolitical Context Democrats re-gained Congress & White House Part of Wilson's New Freedom; appeared personally before Congress to advocate Wilson alerted public to lobbyists efforts in successful attempt to stem any railroading Hard to evaluate its success because WWI led to huge demand for American goods Rate = 26%
20 Emergency Tariff (1921) Description Increased rates on foreign agricultural products Sociopolitical Context Republicans back in control of the government Protecting American agriculture from European products returning to the market after WWI Rate =
21 Fordney-McCumber Tariff (1922) Description Raised tariff levels in a protectionist manner Created provisions for Tariff Commission to flexibly raise or lower rates on key items as needed Sociopolitical Context Republicans returned to protectionism Significantly dampened international trade, stopping European countries from making money to rebuild / pay off war debts Economic isolationism Rate = Highest to date
22 Hawley-Smoot Tariff (1930) Description Started as moderately reformist but railroaded into highly protective measure Very high rates, especially on sugar Sociopolitical Context Completely decimated international trade, thereby worsening the international Great Depression Rate = 49%
23 Hull Trade Pacts (1934) Description Treaties with foreign nations to reduce tariffs Sociopolitical Context Attempt to stimulate international trade during the Great Depression
24 General Agreement on Tariffs and Trade (GATT) (1948) Description United Nations organization designed to seek tariff reductions and promote free trade Sociopolitical Context In the emerging context of the Cold War Designed to protect international capitalism
25 Trade Expansion Act (1962) Description Gave the President authority to reduce tariff rates as much as 50% Sociopolitical Context Aimed mostly at European countries Cold War capitalist measure to increase economic ties with ally nations
26 “Kennedy Round” (1963-1967) Description GATT talks aimed at reducing rates with Western Europe Sociopolitical Context Further solidification of capitalism in north Atlantic area Rate = 33% reduction
27 “Tokyo Round” (1973-1979) Description GATT talks to promote free trade Included non-GATT member countries Sociopolitical Context
28 Trade Act of 1974 Description President given authority to cancel tariffs against products from developing countries Sociopolitical Context Move to sway 3 rd world countries to capitalist camp during Cold War
29 North American Free Trade Agreement (1993) Description Completely eliminated tariffs between the countries of Canada, America, and Mexico Sociopolitical Context Led to increased trade and economic growth for all 3 countries Led to increased outsourcing of jobs to “cheaper” areas
30 The Big Picture Phase 1 –Infighting between sections over rates and protective nature Phase 2 –High protective tariff during Gilded Age when Republicans & big business ruled Phase 3 –Lowered by progressives Phase 4 –High protective tariff by pro- business Republicans in 1920s Phase 5 –Reduction in tariff rates to promote international capitalism during Cold War Rate Time Sectionalism Progressivism Gilded Age 1920s Cold WarCivil War * Graph is an approximation & not to scale