Post by unlawflcombatnt on Apr 14, 2012 11:01:52 GMT -6
Wikipedia provides a good overview of US Tariff history. Tariffs were the main source of US revenue in the early days of the nation, peaking at 97.9% of total Federal Revenue in 1825. Tariffs provided the majority of Federal revenue until the onset of the Civil War, and then began declining.
By 1900, Tariffs comprised only 41% of total Federal revenue. Tariffs began declining further with the passage of Federal Income Tax in 1913 (and with creation of the Federal Reserve), falling to only 14% of total Federal revenue by the onset of the Great Depression.
By 1935, Tariffs were only 8.4% of Federal Revenue, and had fallen to only 0.9% of Federal Revenue by 1944.
After that time, Tariffs "peaked" at 1.6% of revenue in 1985, and have remained less than that to this day.
from Wikipedia:
Tariffs in US History
"Tariffs in United States history have played major to minor roles in trade policy, political debates and the nation's economic history. The 1st United States Congress, wanting a straight forward tax that was not too onerous and easy to collect, passed the Tariff of 1790. This was a tariff bill that taxed imported goods at their Ports of entry to raise Federal tax income. Tariffs were the largest (approaching 95% at times) source of federal revenue till the Federal income taxes were made legal by the Sixteenth Amendment to the United States Constitution in 1913 followed by the Social Security legislation passing in 1935. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. The tariffs collected are often called customs or custom duties and are now collected by the US Customs and Border Protection agency at designated Ports of entry and designated border crossing sites.
There are no tariffs for imports or shipments from other states--this is prohibited by the US Constitution. 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....
In 1930 the federal tariff and excise tax collections were roughly equal from at about 14% each. The Great Depression (1929–1939) saw a major increase in excise taxes to about 35% of Federal Income in 1935 compared to only about 8% due to tariffs. Since 1935 tariff income has continued to be a declining percentage of Federal tax income. Using tariffs to control trade and generate tax income seems to have presently become unpopular in the United States Congress which has increasingly relied on Income Taxes and the Payroll tax as sources of Federal tax income....
The tariff issue was central to political party debates in the Second Party System, Third Party System and Fourth Party System, from the 1820s to the early 1930s. 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 and industrial workers....
Since the 1930s, however, tariffs have been very low and have been much less a matter of partisan debate.
History and background
Responding to an urgent need for revenue following the American Revolutionary War, after passage of the U.S. Constitution the First United States Congress passed, and President George Washington, signed the Tariff Act of July 4, 1789, which authorized the collection of duties on imported goods. Customs duties as set by tariff rates up to 1860 were usually about 80-95% of all federal revenue. Having just fought a war over taxation (among other things) the U.S. Congress wanted a reliable source of income that was relatively unobtrusive and easy to collect. Tariffs and excise taxes were authorized by the United States Constitution and recommended by the first United States Secretary of the Treasury, Alexander Hamilton in 1789 to tax foreign imports and set up low excise taxes on whiskey and a few other products to provide the Federal Government with enough money to pay its operating expenses and to redeem at full value U.S. Federal debts and the debts the states had accumulated during the Revolutionary War. Hamilton thought it was important to start the U.S. Federal government out on a sound financial basis with good credit.
The first Federal budget was about $4.6 million dollars and the population in the 1790 U.S. Census was about four million. Hence the average federal tax was about $1/person per year. Then tradesmen earned about $0.25 a day for a 10-12 hour day so federal taxes could be paid with about four days work. Paying even this was usually optional as taxed imports listed on the tariff lists could usually be avoided if desired."
Exactly. Avoiding the Tariffed goods is exactly the desired effect of Tariffs. Buy American domestically-produced goods, instead of foreign-produced goods.
What an amazing concept!
Too bad our legislators have forgotten about an excellent policy that was implemented over 220 years ago, and served us well until it was abandoned after WW II, and fully negated by multiple Free Traitor bills.
By 1900, Tariffs comprised only 41% of total Federal revenue. Tariffs began declining further with the passage of Federal Income Tax in 1913 (and with creation of the Federal Reserve), falling to only 14% of total Federal revenue by the onset of the Great Depression.
By 1935, Tariffs were only 8.4% of Federal Revenue, and had fallen to only 0.9% of Federal Revenue by 1944.
After that time, Tariffs "peaked" at 1.6% of revenue in 1985, and have remained less than that to this day.
from Wikipedia:
Tariffs in US History
"Tariffs in United States history have played major to minor roles in trade policy, political debates and the nation's economic history. The 1st United States Congress, wanting a straight forward tax that was not too onerous and easy to collect, passed the Tariff of 1790. This was a tariff bill that taxed imported goods at their Ports of entry to raise Federal tax income. Tariffs were the largest (approaching 95% at times) source of federal revenue till the Federal income taxes were made legal by the Sixteenth Amendment to the United States Constitution in 1913 followed by the Social Security legislation passing in 1935. For well over a century the federal government was largely financed by tariffs averaging about 20% on foreign imports. The tariffs collected are often called customs or custom duties and are now collected by the US Customs and Border Protection agency at designated Ports of entry and designated border crossing sites.
There are no tariffs for imports or shipments from other states--this is prohibited by the US Constitution. 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....
In 1930 the federal tariff and excise tax collections were roughly equal from at about 14% each. The Great Depression (1929–1939) saw a major increase in excise taxes to about 35% of Federal Income in 1935 compared to only about 8% due to tariffs. Since 1935 tariff income has continued to be a declining percentage of Federal tax income. Using tariffs to control trade and generate tax income seems to have presently become unpopular in the United States Congress which has increasingly relied on Income Taxes and the Payroll tax as sources of Federal tax income....
The tariff issue was central to political party debates in the Second Party System, Third Party System and Fourth Party System, from the 1820s to the early 1930s. 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 and industrial workers....
Since the 1930s, however, tariffs have been very low and have been much less a matter of partisan debate.
History and background
Responding to an urgent need for revenue following the American Revolutionary War, after passage of the U.S. Constitution the First United States Congress passed, and President George Washington, signed the Tariff Act of July 4, 1789, which authorized the collection of duties on imported goods. Customs duties as set by tariff rates up to 1860 were usually about 80-95% of all federal revenue. Having just fought a war over taxation (among other things) the U.S. Congress wanted a reliable source of income that was relatively unobtrusive and easy to collect. Tariffs and excise taxes were authorized by the United States Constitution and recommended by the first United States Secretary of the Treasury, Alexander Hamilton in 1789 to tax foreign imports and set up low excise taxes on whiskey and a few other products to provide the Federal Government with enough money to pay its operating expenses and to redeem at full value U.S. Federal debts and the debts the states had accumulated during the Revolutionary War. Hamilton thought it was important to start the U.S. Federal government out on a sound financial basis with good credit.
The first Federal budget was about $4.6 million dollars and the population in the 1790 U.S. Census was about four million. Hence the average federal tax was about $1/person per year. Then tradesmen earned about $0.25 a day for a 10-12 hour day so federal taxes could be paid with about four days work. Paying even this was usually optional as taxed imports listed on the tariff lists could usually be avoided if desired."
Exactly. Avoiding the Tariffed goods is exactly the desired effect of Tariffs. Buy American domestically-produced goods, instead of foreign-produced goods.
What an amazing concept!
Too bad our legislators have forgotten about an excellent policy that was implemented over 220 years ago, and served us well until it was abandoned after WW II, and fully negated by multiple Free Traitor bills.
