May 24, 2025
Prior to 1913 the majority of taxes were collected via Tariffs, and some Excise taxes. Several groups, including the Populist (aka People’s) Party, the Socialist Labor Party, and Democrat Party advocated for a graduated tax rate believing that Tariffs were disproportionately impacting the working class and that a graduated tax rate could shift the burden to wealthier businessmen. The 16th Amendment was passed by Congress in 1909, and ratified in 1913, the 16th amendment established a Federal Income Tax. The Amendment was ratified by 42 states with exception to Florida, Connecticut, Pennsylvania, Rhode Island, Utah, and Virginia. The Amendment allowed Congress to levy an income tax without apportioning it among the states on the basis of population making it legal to have the Progressive Tax system we have today. It was passed by Congress in response to the 1895 case of Pollock v. Farmers’ Loan & Trust Co.
Significance:
- First legal Progressive Tax system, took an Constitutional Amendment by Congress and ratified by the states to enact
- Allowed for taxation without apportionment, meaning taxes could be levied at different rates not according to population which in essence was a flat tax.
- Supported by a number of parties including Socialist Labor Party, Democrat Party, Populist Party
- Shifted the primary revenue source for Federal Revenue from Tariffs on other countries to Income Tax on American Citizens
Learn MoreFeb 15, 2025
The Committee on Department Methods, popularly known as the Keep Commission, was appointed by President Theodore Roosevelt in 1905. The Commission represented the first assertion by a President that the President is responsible for administration. The Keep Commission was formed to study and recommend improvements in the methods and organization of the federal government’s executive departments. The Keep Commission goal was to “place the conduct of the Government on the most economical and effective basis in the light of the best modern business practice.”
Significance:
- The commission focused on streamlining government operations, reducing inefficiencies, and enhancing administrative practices.
- Faced significant Congressional resistance
- Ultimately Congress adopted Roosevelt’s recommendations and created a pension system, a modern personnel classification scheme, the General Service Administration, and the National Archives
Learn MoreFeb 15, 2025
The Budget and Accounting Act of 1921 (enacted June 10, 1921) established the framework for the modern federal budget. The act was approved by President Warren G. Harding to provide a national budget system and an independent audit of government accounts. The official title of this act is “The General Accounting Act of 1921”, but is frequently referred to as “the budget act”, or “the Budget and Accounting Act”. This act required the president to submit an annual budget for the entire federal government to Congress. The object of the budget bill was to consolidate the spending agencies in both the executive and legislative branches of the government.
Significance:
- Centralized Federal budget, before done by Agencies in their silos directly to Congressional Committees
- Greater transparency, and visibility of spending
- Created the Bureau of Budget (now the OMB – Office of Management and Budget) in the Treasury now part of the Whitehouse
- Created the Government Accounting Office, the lead accounting audit agency in the government that provides info to the Whitehouse and reports to Congress.
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Oct 25, 2024
The US National Debt balloons to over $35 Trillion dollars exceeding 100% of GDP and peaking at the highest levels since World War II following Great Recession and COVID bailouts, and period of high deficit level spending.
Significance:
- Interest on Debt exceeds $1 Trillion dollars alone
- Interest payments exceed cost of US Military, move into 3rd largest budget expense
- Period marked by High Inflation
- Looming decisions on higher deficits, more taxes, lower spending, or higher inflation
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Feb 14, 2024
Punitive measures imposed by the British Parliament in response to the Boston Tea Party, including closing the Boston Harbor and strengthening British control in Massachusetts.
Significance
- Seen as further oppression and violation of colonial rights, solidifying support for independence and the coming revolution.
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