Mark West
1913, Part 2
By Mark West
Funding government initiatives was becoming a very costly process at the turn of the century. Tariffs and excise taxes were enormously expensive creating stagnancy in trade. Another means of funding was necessary for economic progress.
Several attempts at national income taxes had been thwarted by the courts, most notably in the Pollack case. Government realized that a Constitutional Amendment was the only way to tax individual income.
The income tax amendment, the sixteenth to our constitution, was proposed by President Howard Taft and Congressman Nelson Aldrich. It was passed through Congress and sent to the states for ratification. Proponents of the tax cited a need to prevent economic aggregation into the hands of the wealthy few as the reason to ratify this amendment.
February of 1913, the Sixteenth Amendment was proclaimed as ratified by Secretary of State Philander Knox. Congress could now, for the first time, legally and directly tax the income of individual citizens of the United States.
The first income tax law, on the "rich," set the tax at 1% for individuals earning $425,000 in 2009 currency. Funding was now accessible as the amendment allowed Congress to directly tax whatever income they desired from whatever means it was derived.
Yet Congress found another hurdle in the States. Further economic centralization, namely for the banking industry, would need to prevent State's from blocking legislation through their granted balance of powers in the Senate. Senators were elected by State legislatures.
In 1911, citing corruption, stagnant state legislature elections, and laws in some states providing for such already; Congress sent the Seventeenth Amendment to the states for ratification. If ratified, this amendment would have Senators directly elected by the people.
State's, via the Senate, tended to balk and deliberate over legislation rather than be malleable to public opinion.
April of 1913, the Seventeenth Amendment was ratified. Senators could now act without fear of reprisal by their State legislature. Another balance of power removed, removing another block of our Republic and dragging us closer to pure democracy.
Senators could now rubber stamp the "will of the people" as it flowed from the House of Representatives. The "people" wanted economic stability...the "people" were going to get their wish.
Yet, what it would cost the nation in the long term was yet unknown.
What would they get? Find out in part 3.
© Mark West
June 10, 2009
Funding government initiatives was becoming a very costly process at the turn of the century. Tariffs and excise taxes were enormously expensive creating stagnancy in trade. Another means of funding was necessary for economic progress.
Several attempts at national income taxes had been thwarted by the courts, most notably in the Pollack case. Government realized that a Constitutional Amendment was the only way to tax individual income.
The income tax amendment, the sixteenth to our constitution, was proposed by President Howard Taft and Congressman Nelson Aldrich. It was passed through Congress and sent to the states for ratification. Proponents of the tax cited a need to prevent economic aggregation into the hands of the wealthy few as the reason to ratify this amendment.
February of 1913, the Sixteenth Amendment was proclaimed as ratified by Secretary of State Philander Knox. Congress could now, for the first time, legally and directly tax the income of individual citizens of the United States.
The first income tax law, on the "rich," set the tax at 1% for individuals earning $425,000 in 2009 currency. Funding was now accessible as the amendment allowed Congress to directly tax whatever income they desired from whatever means it was derived.
Yet Congress found another hurdle in the States. Further economic centralization, namely for the banking industry, would need to prevent State's from blocking legislation through their granted balance of powers in the Senate. Senators were elected by State legislatures.
In 1911, citing corruption, stagnant state legislature elections, and laws in some states providing for such already; Congress sent the Seventeenth Amendment to the states for ratification. If ratified, this amendment would have Senators directly elected by the people.
State's, via the Senate, tended to balk and deliberate over legislation rather than be malleable to public opinion.
April of 1913, the Seventeenth Amendment was ratified. Senators could now act without fear of reprisal by their State legislature. Another balance of power removed, removing another block of our Republic and dragging us closer to pure democracy.
Senators could now rubber stamp the "will of the people" as it flowed from the House of Representatives. The "people" wanted economic stability...the "people" were going to get their wish.
Yet, what it would cost the nation in the long term was yet unknown.
What would they get? Find out in part 3.
© Mark West
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