3-06-06 - Social Security and Taxation

3-06-06 - Social Security and Taxation - Social Security...

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Social Security and Taxation… Delicious 3/6/06 1. Taxation a. One storyline – the happy FDR storyline i. Noble democratic efforts to raise up the “forgotten man” through redistribution tax reform b. Second storyline – the Mark Leff story i. Income tax 1. Origin a. 16 th amendment allows for income tax b. Originates from a “soak the rich” tradition 2. Who paid? a. Few paid income tax – in 1929, only 5% paid – Class Tax b. By World War II – 70% paid – Mass Tax c. Less reliance on excise and sales taxes that tax everyone d. Tax collections drop by 50% after The Crash 3. Phases a. Economic “Heavy Lifting” – Hoover (32) through 35 i. Hoover’s Revenue Act of 1932 1. Increase in use of excise taxes 2. Hikes taxes on corporate profits ii. FDR – 1932-1935 1. New federal relief programs cannot float on these taxes 2. Uses “Trojan horse” (regressive) taxes such as alcohol, tobacco taxes 3. Accounts for 12% of federal taxes iii. Response to taxes 1. Economists and Bob LaFollete (D-WI) against taxing the “forgotten man”
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This note was uploaded on 11/04/2010 for the course HIST 322 taught by Professor Smith,js during the Spring '06 term at Cornell University (Engineering School).

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3-06-06 - Social Security and Taxation - Social Security...

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