Social Security Act

Created a safety net for retirees and shaped the modern US welfare state, with ongoing debates about its financial sustainability.

 

Significance

  • Established a major new entitlement program, significantly increasing federal spending.
  • Introduced payroll taxes to fund Social Security program for retirement benefits.

 

Learn More

Social Security Act

Gold Standard Abandoned

Enabled fiscal interventions during the Great Depression but raised concerns about monetary responsibility.

 

Significance

  •  Potential for inflation without gold-backed currency.  
  • Increased government flexibility in managing the money supply and interest rates.

 

Learn More

Gold Standard Abandoned

New Deal

Comprehensive set of programs and reforms proposed by President Franklin D. Roosevelt to address the Great Depression.

 

Significance

  • Increased federal spending on various programs, leading to higher taxes to fund them, shaping the debate on government role and taxation.

 

Learn More

New Deal

Revenue Act of 1932

Increased income tax rates significantly, targeting high earners, to fund New Deal programs during the Great Depression.

 

Significance

  • Marked a shift towards using tax policy for social welfare, wealth redistribution and fiscal stability.

 

Learn More

Revenue Act of 1932

16th Amendment

Ratified amendment to the Constitution authorizing Congress to levy an income tax without apportioning.

 

Significance

  • Established the income tax as a permanent source of federal revenue, contributing to broader social programs and government spending.
  • Ability to tax progressively “without apportionment” to the states

 

Learn More

 

16th Amendment

Tax Project Institute

Get the Newsletter

Sign up to get the newsletter