Status Updates From Federal Taxation in America...

This chapter made me feel like George W Bush is worth hating strictly because his tax policy and stubbornness. Definitely starting to wonder what correlations can be found between tax cuts and modest turn downs in the economy or even full out recessions/depressions.

G. W. Bush was a piece of work and his opinions towards taxes resulted in our current borrow reliant federal budget shifting the tax regime.

Bill Clinton really had to have bipartisan skills.

1986 Tax Reform Act was more progressive than most would believe, but also “no new taxes” really kneecapped H.W. in his efforts to get re-elected. Lastly there was a mention of a divided Republican Party and I found that intriguing.

When inflation is high and wages fail to keep up the regressive tax of Social Security does not keep up. Therefore inflation in cost of living without rising wages means Social Security becomes burdensome and unsustainable budget item for the government.

Is the main argument really increase tax revenue or increase tax cuts for the wealthiest? It definitely does seem to boil down to that, but the complex questions follow even once you simplistically look at tax policy through this lens of revenue ability and tax cut opportunities based on the tax base.

WWII resulted in taxation of the masses rather than taxation of the higher classes. Also WWII relied on income tax when WWI relied on corporate tax. Such an interesting period of progressive and regressive changes all occurring simultaneously.

It’s incredibly interesting that someone with progressive tax policy (FDR) got railroaded by a bipartisan deal between Republicans and moderates within his own party so much so that a portion of his tax policy is the bones used by conservatives of today. Also love how invested FDR was in the goal of a balanced budget but got screwed by the tax base and loopholes.

Starting to see some shifting in what political platforms looked like for each party. President Wilson created the IRS and seems like much of the systems it out in place early on in terms of reporting salaries falling on corporations and ppl hasn’t changed. Also very very intrigued that paying your taxes during WWI was considered patriotic just like it was prior to the 16th amendment during the civil war.

Civil war gave rise to experimenting with income tax and by world war I the practices was brought back, legalized, and normalized. Intrigued by what future conflicts will do to the tax policies I will come across as I read through the book.

The tax changes of 1894 taxed individuals and corporations at the same rate but assumed some checks that took ability to pay into account.

I find it intriguing that I’m the 1830s and 1850s the federal government made significant strides in paying down the national debt (at one point completely paying it off) meanwhile states were struggling to pay their debts and also develop their own successful systems of tax. All while the historic backdrop was an economic depression and social divide growing between 2 parts of the nation!

Moving the capital of the United States from New York to Philly and then to Virginia was originally due to fear of how rich elites would affect middle-class taxes and Virginia was seen as the area of the workingman. Also in 1795 the federal debt went down love seeing that when’s the next time I’ll see it in this book?

So interesting how starting way back in the 1780s northern states were inclined to complete projects and start programs through the practice of taxes as they were comfortable implementing property taxes. Where as southern states were less inclined to do so because slaves would have inflated property values, so their political elite minimized expenditure programs.

Almost done

It turns out, the period from the 1920s to the 1930s was where federal tax policies got hopelessly complicated.

This book is way more fascinating than it should be.