In 1789, Alexander Hamilton took office as the first United States Secretary of the Treasury. Hamilton believed in centralized government and wanted to create ways for the nation as whole to pay off all war debts, raise government revenues, and create a national bank. Amongst many of Hamilton’s duties as Secretary of Treasury; was to formulate a financial plan to alleviate the country’s hefty debt from the Revolutionary War. He believed that since most of the war debt was incurred by the States but for the benefit of the entire nation, the debts from the war should be assumed by the federal government. Many states in the South had already repaid most of their debt and they wanted to restrict centralized power, they opposed the notion; while Northern states that were still carrying heavy debt loads supported the notion.
In a letter to Jean-Baptiste Leroy in the year 1789, Benjamin Franklin wrote, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Just over two hundred and twenty five years later, his statement still holds its validity. Before the Sixteenth Amendment was ratified in The right for the government to tax income (the 16th) is less damaging to society than the right to keep and bear arms (the 2nd) because the Sixteenth Amendment applies to everyone, income tax is a vital component to the running of the United States, and income tax allows Americans to make a positive contribution to the country. America is known for its diversity.
The United States of America was in its lowest period when bill Clinton was elected on November 3, 1992 which made him in a critical situation and in front of a huge responsibility. His first and main correctional act is reducing the federal budget deficit which was the largest in American history ($290 billion). In fact, he started working on that with implementing higher taxes for the wealthy people and lower for the poor, reduction of tariffs and programs to increase federal government efficiency. According to the appendix A, President Bill Clinton’s policies were successful after moving from a $290billions federal deficit in 1992 to a surplus of $236 billion in 2001 when he left the presidency. The benefits were used to pay the national debt.
The social security is a costing system and it occupies a big proportion in the government spending. In Barbara R. Bergmann’s article “Could Social Security Go Broke?,” she deems that there is enough fund in the social security system and the government can easily transfer the tax income from current employees and firms that employ these employees to the social security to support retirees’ lives. This point of view only can be considered as assumption, but not for the real world. After the finacial crisis in 2008, a large number of employees were laid off during that time and some employees decided to retire early, which results the labor force in American has shrunk. In the meantime, the presence of effective technology products,
The Wilson-Gorman Tariff was a response to the government borrowing 65 million dollars from J.P. Morgan, in order to stop the “gold drain”, after Cleveland removed the Sherman Silver Purchase, which the people interpreted as the government favoring rich eastern bankers. The Wilson-Gorman Tariff moderately decreased the rates of the tariffs and included a two percent tax on those who made an income around 2,000
It isn’t actually that frequent, about once a modern lifetime, but seems to have gotten more frequent the closer we get to now. In the last twenty years, we have had two times when the system has given a winner that wasn’t supported by the majority of voters, yet we didn’t have any in all of the 20th century. This could mean that it is getting more and more likely that the electoral college will have someone that the majority of voters didn’t vote for. All of this contributes to the idea that one vote is worthless, which is why the electoral college is antithetical to a democracy. Congressmen aren’t elected through a slate of people voted by citizens to vote for citizens, so why is the president?
The Volstead act was used as a heavy influence with the importance of putting the law into effect. Enforcing the alcohol prohibition in America cost approximately "$300 million to the American government" . It was also seen that some states relied on alcohol to fund large portions of their budgets, but now that money was gone. The federal government lost approximately "$11 billion in tax revenue while spending funds on trying to prohibit alcohol". It become evident through the economic downfall both the states and the federal government began to rely more heavily on personal income taxes to fill their
The Whiskey Rebellion occurred due to the tax imposed upon whiskey, the growing need to pay off war debts, and the urge to levy government power. The Whiskey Rebellion of 1791 occurred mainly throughout West Pennsylvania. The wealthy believed the tax was good for the society, while the laborers believed the government was being too harsh. Farmers rebelled against the tax that Alexander Hamilton, Secretary of State, placed upon whiskey. Tax was placed upon whiskey in order to show the government's power and to also help pay off the debts caused by the Revolutionary War.
The recession caused a loss of 2.9 million jobs, representing a 3% drop in payroll employment. Many people blamed the recession on President Jimmy Carter, who was in office from 1977-1981. Lots of people blamed Carter because the recession started during his first term. Ronald Reagan was the President of the United States, and in August of 1981 he signed the Economic Recovery Tax Act of 1981, which was a three-year tax cut plan. Reagan’s economic plan gave hope to the citizens of the United States that the recession would end soon.
Since trade was boosted, Americans came to accumulate a large amount of debt to the British creditors. (Henretta & Brody, 2010) In order to extract money from the colonist to repay their debt, the British then began to place tariffs on many common items that had no reason to be taxed. The colonies felt the same way and even though they had an underlying debt, they felt that this was the improper way to go about