Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
In the campaign of 1892, the demand for an income tax was made by the
Populist party and by the Socialist Labor party. The former frankly
declared war on the rich, proclaiming in its platform that, "The fruits
of the toil of millions are boldly stolen to build up colossal fortunes
for a few, unprecedented in the history of mankind; and the possessors
of these, in turn, despise the republic and endanger liberty." Among the
remedies for this dire condition of things the Populists demanded "a
graduated income tax." The Democrats, at their convention of that year,
denounced the McKinley tariff law "as the culminating atrocity of class
legislation," and declared that "The Federal government has no
constitutional power to impose and collect tariff duties except for the
purpose of revenue only."
When it was discovered in the ensuing election that the Democratic
party, with its low tariff pronunciamento was victorious, and that the
Populists with their radical platform had carried four western states
and polled more than a million votes, shrewd political observers saw
that some revision in the revenue system of the Federal government was
imperative. President Cleveland, in his message of December, 1893, in
connection with the recommendation for a revision of the tariff, stated
that, "the committee ... have wisely embraced in their plans a few
additional revenue taxes, including a small tax upon incomes derived
from certain corporate investments." It is not clear what committee the
President had in mind, and Senator Hill declared that the Ways and Means
Committee had not agreed "upon any income tax or other internal
taxation"; although it had undoubtedly been considering the subject in
connection with the revision of the tariff.
Public-domain text, read in full here on John Shaqi.
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