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The first United States Congress, wanting a direct tax that was not too difficult and stress-free to accumulate, so they voted for and passed the Tariff Act of 1789. This was a key Acts in the constitution of 1789 and congress wanted this Act to be at the front of all the Acts that they had coming fore. In section one of the constitution the sole purpose of this Act was stated, "Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise:"(Eicher, 2013). All of the countries surrounding the United States would say, that the tariff of 1789 played a major role in the trade policies of the world.
Enter the Declaratory Act. Enacted by the British Parliament on March 18, 1766, this act was “for the better securing the dependency of his majesty’s dominions in America…” Parliament and the crown of Great Britain wanted authority to be the same not only in the mother country, but also in America. This meant that any laws that were imposed in Great Britain would also become binding laws in America, including ability to tax the people. The act was clearly political in nature and was passed to keep the colonists from making their own laws.
The Stamp Act of 1765 was the first internal tax levied directly on American colonists by the British government. The act, which imposed a tax on all paper documents in the colonies, came at a time when the British Empire was deep in debt from the Seven Years’ War and looking to its North American colonies as a source of revenue. Arguing that only their own representative councils could tax them, the North American colonies demanded that the act was unconstitutional, and they resorted to violence to force stamp collectors into resigning. Parliament repealed the Stamp Act in 1766, but issued a Declaratory Act at the same time to reaffirm its authority to pass any colonial legislation it saw as necessary. The issues of taxation and representation
At the time the American economy was in a recession and on track to eventually succumb to a depression, so many wanted a tariff to protect their domestic goods from foreign imports. It is important to note that a moderate protective tariff was already in place and most of the debate revolved around the severity of the overall amount. Moreover, the tariff to some seemed that it was directly benefiting northern Industry while making southerner’s pay a higher price. Henry Clay advocated for a relatively high tariff and believed that it would eventually lead to creating a cornerstone market for the United States similar to the one that was in many European countries. Furthermore, Clay asserted through numerous orations that by having a high protective tariff it would bring the nation closer together and consequently become more interdependent. One way in particular that Clay tried to urge the American people to his side was by keying in on their fears of the current state of the economy, which was actively influential to a plethora of individuals. Conversely, Andrew Jackson also similarly supported a protective tariff, however it was for dissimilar justifications and not to Clay’s full extent. Jackson’s primary reasoning related to the need to stimulate the production of defense materials as well as the need to decrease the national
The power to tax is key to a successful government. If a government is to act it needs the means to do so. The Articles withheld the power of taxation from Congress and gave it to the local governments. Congress could only appeal to the states for money. Unsurprisingly, the states did not respond with any of the requested money. This was a serious problem because the U.S. was in an incredible amount of debt as a result of the Revolutionary War. If money cannot be collected, how are debts to be paid? Some in Congress believed the problem could be solved by printing more money. However, this strategy only led to inflation, which weakened the economy furthe...
(doc 6). In the Articles of Confederation the congress wasn’t allowed the power to tax. Congress couldn’t tax people for their own benefits and couldn’t tax exports. The exports helped pay merchants and manufacturers but still left them in debt. In the 16th amendment it states that “ the congress shall have power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defence and general warfare of the U.S.” Thomas Paine thinks that taxes should be levied enough to where everyone can pay it. He also states that “heaven knows how to put prices upon goods.” *(doc 7) Thomas Paine wanted to advocate independence from Britain to people in the thirteen colonies, one of those things h is advocating in this excerpt is taxes. ( doc 7).
After the Seven Year War, Britain now needed to find ways to generate money, and felt that since the war was fought on American land that they should help pay for its cost, and they decided to issue new taxes on the colonies trying to offset some of the cost of the war. One of the first acts they presented was the Sugar act in 1764, lowering the duties on molasses but taxed sugar and other items that could be exported to Britain. It also enforced stronger laws for smuggling, where if prosecuted, it would be a British type trial without a jury of their peers. Some Americans were upset about the Sugar Act because it violated two strong American feelings, first that they couldn't be tried without a jury of their peers, and the second that they couldn't be taxed without their consent.
As seen in Document C, Congress had so little money that it couldn’t afford to pay the army their bonuses. The army, of course, was discontented in this lack of action and thought they were being treated unjustly. The delay was so slow that the army did not think they were going to get paid. This, in itself, exhibits the great need for the national government to acquire the power to tax.
The Confederation act of 1867 without question has had a major influence on the status of contemporary Canada. It has helped shape Canada into one of the worlds most politically and economically powerful countries; a country that is strong, independent, and united. There was a series of events which led to the confederation of Canada, some which are more significant than others. However, I believe that despite the significance of events such as the British encouragement of uniting its North American colonies, the central and key reason for confederation was the fear of potential American (Yankee) inhabitance (whether by persuasion or invasion) of the divided and vast British North American colonies, and the way that the “Fathers of Confederation” were able to take advantage of this situation and persuade reluctant colonies to join Confederation. A strong and united nation could not be easily invaded or bought. These essential factors will be discussed in the paragraphs to come.
I will investigate the question of whether the national tariff policy between 1816 and 1832 impacted the development and acceptance of the nullification doctrine in South Carolina? I will evaluate the national tariff policy during the early 1800's and analyze how these tariffs may have impacted the acceptance and support of nullification in South Carolina. I will examine the economic conditions of South Carolina during this period and compare these conditions with the development of nullification as a political tool. I will also review the Kentucky and Virginia Resolutions to look at early examples of state sovereignty.
It was the ending of December 1773, when france and england ended their war, british parliament felt the need to imply taxes in order to raise money to pay off the debt from the war. They first put a debt on sugar and tea this was known as The Sugar Act the act was placed in 1764 this was a direct tax and they felt that this would stop smuggling but the colonist still had no money, that next year The Stamp Act got placed in 1765 on almost all printed items such as newspapers and pamphlets to wills and playing cards, after this tax was placed the colonist felt that it was time to take action but the parliament ignored, but then in october delegates came together and made a petition to repeal the act in March 1766 the act got repealed.("The Stamp Act - November 1, 1765.")
The United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a result of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted from isolationist protectionism to a commitment to establishing world-wide free trade. Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a number of policies that can be examined for both their benefits and flaws. Several trade policies exist as options to the United States, among these fair trade and free trade policies dominate the world economic market. In order to achieve economic growth the United States has a duty to maintain a global trade policy that benefits both domestic workers and industry. While free trade gives opportunities to large industries and wealthy corporate investors the American worker suffers job instability and lower wages. However fair trade policies that protect America’s workers do not help foster wide economic growth. The United States must then engage in economic trade policies that both protect the United States founding principles and secure for tomorrow greater economic stability.
The first regulation that was established was the Sugar Act. The colonists had to pay taxes for every gallon of molasses or sugar that came into the colonies. If I were a colonist I would be especially upset about this act. One reason is because they have never taxes the colonists before. The other reason is because even if you don’t use the sugar or molasses you
One of the clauses that helped the government was the Taxing and Spending Clause, located in Article I, Section 8. The clause allows the federal government to tax citizens of the United States. Under the Articles of Confederation, the government had no power to lay and collect taxes, and had to rely on the demands of the governments of the states. Seeing that Congress had no power to independently raise its revenues, they proposed the Taxing and Spending Clause. Even if the government had the power tax citizens, they did not use it to only raise revenue, but they also taxed to regulate the commerce, taxed to discourage or suppress the commerce, or set tariffs to protect domestic markets from foreign control. On the case of United States v. Butler, the Supreme Court ruled that Congress did not have the power to impose tax due to the Agricultural Adjustment Act and deemed it unconstitutional because it attempted to regulate state activity, thus violating the Tenth Amendment. Regardless of its ruling, the case declared that the government did, in fact, have a wider power to tax, but there were limitations. In another court case, South Dakota v. Dole, the Supreme Court declared that it was constitutional due to the fact that the states' highway funds were withheld if they did not raise their legal drinking age to 21 years old. This would bring more power to the federal government due to forc...
... Federalist thought it was best to reduce the prices on such items. During 1801 to 1808 taxes were increased by Jefferson which then caused a surplus in the Treasury Department. The surplus was good for the people since prices went down but on the other hand they had to pay higher taxes so the surplus wasn’t such a good benefit to them. Later on Jefferson and his secretary of treasure Albert Gallatin proposed to increase tariff duties by 2.5 percent and adding an additional duty of 10 percent on all imported goods. By them adding the extra percentage on to imported goods, it cost the merchants more money to ship their goods and they weren’t making much profit since everything was going up during this time. Thomas Jefferson was adding all this expenses to people’s pockets even though all he was trying to do was to start paying of some of the debt that was being due.
In the 1922 Congress passed the Fordney-McCumber Act which raised tariffs to 40%, and in 1933 Hoover passed the Smoot-Hawley tariff which raised tariffs to 60%. These tariffs caused foreign markets to turn their backs on American goods because foreign markets couldn’t afford to pay 40-60% extra on tariffs. The result of the tariffs was a decline in world trade of 66% (Gill). The world became a global market post world war and allowed the loans between countries to become much easier, and this allowed the stimulus plan to work (Bartlett).