Posted on 08/29/2015 6:23:47 PM PDT by dennisw
The Tariff Act of 1789, was the first major Act passed in the United States under its present Constitution of 1789 and had two purposes as stated in Section I of the Act which reads as follows;
The Federal legislature, acting under the recently ratified US Constitution, authorized the collection of tariff and tonnage duties to meet the operating costs of the new central government, to provide funds to pay the interest and principal on revolutionary war debts inherited from the Continental Congress.[2] It also provided a degree of protection. "The protective acts of the states furnished the experience on which the national legislators based their proceedings."[3] The general range of duties was by no means such as would have been thought protective in later days; but the intention to protect was there.[4]
The debates over the purpose of the tariff exposed the sectional interests at stake: Northern manufacturers favored high duties to protect industry; Southern planters desired a low tariff that would foster cheap consumer imports.[5] The final bill extracted concessions from both interests, but delivered a distinct advantage to maritime and manufacturing regions of the country.[6][7]
Representative James Madison of Virginia navigated to passage, but was unable to insert provisions that would have discriminated against British imports[8][9] and shift the carrying trade to French and American vessels.
The Tariff Bill was passed in the House by a vote of 31-19 on July 1, 1789; the resultant enrolled Bill was signed by the Speaker of the House and the President of the Senate on July 2, 1789; and President Washington signed the Act in law on July 4, 1789. [10]
| U.S. Historical Tariffs (Customs) Collections by Federal Government (All dollar amounts are in millions of U.S. dollars)[1][2][3][4][5][6] |
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|---|---|---|---|---|---|---|
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| Year | Tariff Income |
Budget % Tariff |
Federal Receipts |
Income Tax |
Payroll Tax |
Average Tariff |
| 1792 | $4.4 | 95.0% | $4.6 | $- | $- | 15.1% |
| 1795 | $5.6 | 91.6% | $6.1 | $- | $- | 8.0% |
| 1800 | $9.1 | 83.7% | $10.8 | $- | $- | 10.0% |
| 1805 | $12.9 | 95.4% | $13.6 | $- | $- | 10.7% |
| 1810 | $8.6 | 91.5% | $9.4 | $- | $- | 10.1% |
| 1815 | $7.3 | 46.4% | $15.7 | $- | $- | 6.5% |
| 1820 | $15.0 | 83.9% | $17.9 | $- | $- | 20.2% |
| 1825 | $20.1 | 97.9% | $20.5 | $- | $- | 22.3% |
| 1830 | $21.9 | 88.2% | $24.8 | $- | $- | 35.0% |
| 1835 | $19.4 | 54.1% | $35.8 | $- | $- | 14.2% |
| 1840 | $12.5 | 64.2% | $19.5 | $- | $- | 12.7% |
| 1845 | $27.5 | 91.9% | $30.0 | $- | $- | 24.3% |
| 1850 | $39.7 | 91.0% | $43.6 | $- | $- | 22.9% |
| 1855 | $53.0 | 81.2% | $65.4 | $- | $- | 20.6% |
| 1860 | $53.2 | 94.9% | $56.1 | $- | $- | 15.0% |
| 1863 | $63.0 | 55.9% | $112.7 | $- | $- | 25.9% |
| 1864 | $102.3 | 38.7% | $264.6 | $- | $- | 32.3% |
| 1865 | $84.9 | 25.4% | $333.7 | $61.0 | $- | 35.6% |
| 1870 | $194.5 | 47.3% | $411.3 | $37.8 | $- | 44.6% |
| 1875 | $157.2 | 54.6% | $288.0 | $- | $- | 36.1% |
| 1880 | $184.5 | 55.3% | $333.5 | $- | $- | 27.6% |
| 1885 | $181.5 | 56.1% | $323.7 | $- | $- | 32.6% |
| 1890 | $229.7 | 57.0% | $403.1 | $- | $- | 27.6% |
| 1900 | $233.2 | 41.1% | $567.2 | $- | $- | 27.4% |
| 1910 | $233.7 | 34.6% | $675.2 | $- | $- | 15.0% |
| 1913 | $318.8 | 44.0% | $724.1 | $35.0 | $- | 17.6% |
| 1915 | $209.8 | 30.1% | $697.9 | $47.0 | $- | 12.5% |
| 1916 | $213.7 | 27.3% | $782.5 | $121.0 | $- | 8.9% |
| 1917 | $225.9 | 20.1% | $1,124.3 | $373.0 | $- | 7.7% |
| 1918 | $947.0 | 25.8% | $3,664.6 | $2,720.0 | $- | 31.2% |
| 1920 | $886.0 | 13.2% | $6,694.6 | $4,032.0 | $- | 16.8% |
| 1925 | $547.6 | 14.5% | $3,780.1 | $1,697.0 | $- | 13.0% |
| 1928 | $566.0 | 14.0% | $4,042.3 | $2,088.0 | $- | 13.8% |
| 1930 | $587.0 | 14.1% | $4,177.9 | $2,300.0 | $- | 19.2% |
| 1935 | $318.8 | 8.4% | $3,800.5 | $1,100.0 | $- | 15.6% |
| 1940 | $331.0 | 6.1% | $5,387.1 | $2,100.0 | $800.0 | 12.6% |
| 1942 | $369.0 | 2.9% | $12,799.1 | $7,900.0 | $1,200.0 | 13.4% |
| 1944 | $417.0 | 0.9% | $44,148.9 | $34,400.0 | $1,900.0 | 10.6% |
| 1946 | $424.0 | 0.9% | $46,400.0 | $28,000.0 | $1,900.0 | 7.7% |
| 1948 | $408.0 | 0.9% | $47,300.0 | $29,000.0 | $2,500.0 | 5.5% |
| 1950 | $407.0 | 0.9% | $43,800.0 | $26,200.0 | $3,000.0 | 4.5% |
| 1951 | $609.0 | 1.1% | $56,700.0 | $35,700.0 | $4,100.0 | 5.5% |
| 1955 | $585.0 | 0.8% | $71,900.0 | $46,400.0 | $6,100.0 | 5.1% |
| 1960 | $1,105.0 | 1.1% | $99,800.0 | $62,200.0 | $12,200.0 | 7.3% |
| 1965 | $1,442.0 | 1.2% | $116,800.0 | $74,300.0 | $22,200.0 | 6.7% |
| 1970 | $2,430.0 | 1.3% | $192,800.0 | $123,200.0 | $44,400.0 | 6.0% |
| 1975 | $3,676.0 | 1.3% | $279,100.0 | $163,000.0 | $84,500.0 | 3.7% |
| 1980 | $7,174.0 | 1.4% | $517,100.0 | $308,700.0 | $157,800.0 | 2.9% |
| 1985 | $12,079.0 | 1.6% | $734,000.0 | $395,900.0 | $255,200.0 | 3.6% |
| 1990 | $11,500.0 | 1.1% | $1,032,000.0 | $560,400.0 | $380,000.0 | 2.8% |
| 1995 | $19,301.0 | 1.4% | $1,361,000.0 | $747,200.0 | $484,500.0 | 2.6% |
| 2000 | $19,914.0 | 1.0% | $2,025,200.0 | $1,211,700.0 | $652,900.0 | 1.6% |
| 2005 | $23,379.0 | 1.1% | $2,153,600.0 | $1,205,500.0 | $794,100.0 | 1.4% |
| 2010 | $25,298.0 | 1.2% | $2,162,700.0 | $1,090,000.0 | $864,800.0 | 1.3% |
| -------------------------------------------------------------------------------------------- | ||||||
| Notes: All dollar amounts are in millions of U.S. dollars Income taxes include Individual and Corporate taxes Federal expenditures often exceed Revenue by temporary borrowings. Initially the U.S. Federal Government was financed mainly by customs(tariffs Average Tariff Rate % = Customs Revenue/ cost of Imports (goods). Other taxes collected are: Income Tax, Corporate Income Tax, Inheritance, Tariffs—often called Customs or duties on imports, etc. Income Taxes began in 1913 with the passage of 16th Amendment. Payroll taxes are Social Security and Medicare taxes Payroll Taxes began in 1940. Many Federal government Excise taxes are assigned to Trust Funds and are collected for and “dedicated” to a particular Trust. Sources:
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Apart from NAFTA being his idea? You can go ahead and thank him for the WTO, while you’re at it . . . .
...by transferring wealth to a favored political constituency from an unfavored one. A tax increase by any name, it also rewards inefficient producers.
Those inefficient producers needed saving again 25 years later and Detroit finally got what it deserved after nearly a century of crony capitalism.
Thus is it always with politicians who try to defy the laws of economic gravity.
Any other industries you'd like to "save?" Steel - too late. Same reason. All they wanted was a little help for an infant industry - in 1850. But they still wanted the protection 100+ years later. That old teat must be pretty stretched out by now.
What do you mean by “under the present Constitution?”
It is under “THE CONSTITUTION” PERIOD.
I pray that it will always be our constitution.
Complete 6-part Revolutionary War series free on YouTube
PBS via YouTube (individual link to each episode provided)
LIBERTY! The American Revolution is a dramatic documentary about the birth of the American Republic and the struggle of a loosely connected group of states to become a nation. The George Foster Peabody award-winning series brings the people, events and ideas of the revolution to life through military reenactments and dramatic recreations performed by a distinguished cast.
_________________________
EPISODE 1: "The Reluctant Revolutionaries" 1763-1774
In 1763, the capitol city of America is London, George Washington is lobbying for a post in the British army, and no one thinks of Boston harbor when they hear talk of tea parties. In a dozen years, the colonies are on the brink of rebellion. What happens to bring this country so quickly near war with England?
EPISODE 2: "Blows Must Decide" 1774-1776
A total break from Great Britain remains hard for Americans to imagine, even after shots are fired at Lexington and Concord. Words push matters "Over the Edge" in 1776. Common Sense argues that it is the natural right of men to govern themselves. The Declaration of Independence declares this same idea a "self-evident" truth. For Americans, there is no looking back. There will be war with England.
EPISODE 3: "The Times That Try Men's Souls" 1776-1777
Days after the Declaration of Independence is signed, a British force arrives in New York harbor. Washington and his troops are driven to New Jersey. With only a few days of enlistment left for many of his volunteers, a desperate Washington leads his army quietly across the Delaware River on the day after Christmas, 1776, to mount a surprise attack on a sleeping garrison in Trenton.
EPISODE 4: "Oh Fatal Ambition" 1777-1778
The "united" states remain in dire need of funds and military support. Congress dispatches Benjamin Franklin to France in hopes of creating an alliance which will provide both. Meanwhile, a British army marches down the Hudson River trying to cut off New England from the other colonies. The British are crushed by Americans at Saratoga. The French enter the conflict on the American side.
EPISODE 5: "The World Turned Upside Down" 1778-1783
The British hope to exploit the issue of slavery and to enlist the support of loyalists in the south. They fail. After a series of brutal engagements, the British army heads for Virginia, only to be trapped by the miraculous convergence of Washington's army and the French fleet at Yorktown. The end of the war is at hand.
EPISODE 6: "Are We to Be a Nation? 1783-1788
Peace comes to the United States, but governing the world's newest republic is no simple task. Congress is ineffectual and individual states act like sovereign nations. By the time the Constitutional Convention convenes in 1787, many wonder if the country can survive. The long ratification process helps define what sort of nation the United States is to be—a process that continues to this day.
__________________________________________________
EPISODE 2: “Blows Must Decide” 1774-1776
https://www.youtube.com/watch?v=XIT_GL-Y5hQ
EPISODE 3: “The Times That Try Men’s Souls” 1776-1777
https://www.youtube.com/watch?v=cnELswbakFs
EPISODE 4: “Oh Fatal Ambition” 1777-1778
https://www.youtube.com/watch?v=Ae6XknOqceI
EPISODE 5: “The World Turned Upside Down” 1778-1783
https://www.youtube.com/watch?v=xkjhu2GKYAs
EPISODE 6: “Are We to Be a Nation? 1783-1788
(Part 6, from a different poster, is cut short by about 20 mins, but ends smoothly)
https://www.youtube.com/watch?v=s1AQ8PJq6mk
Trump would use tariffs aggressively as an instrument of foreign policy, GATT be damned, I guess. Cruz would use a consumption tax: the best revenue method, but without the policy bite of tariffs. They would be a potent combination.
The US didn’t have an income tax until the early 20th century, by which time we were already the largest economy in the world.
We essentially replaced tariff taxes with income taxes.
“The US didn’t have an income tax until the early 20th century,”
We had one before the 20th century.
Lincoln signed the first income tax law in August 1861.
Congress repealed it in 1871.
"Apart from NAFTA being his idea? You can go ahead and thank him for the WTO, while you’re at it . . . ."
Reagan? You're thinking of the pre-NAFTA agreements and treaties. The same ones that Perot mentioned in 1991 or 1992 while NAFTA was just becoming known to the public. I listened to most of Reagan's speeches and don't remember him paying much more than lip service to free trade outside of the context of anti-Communism. The man had a full plate.
NAFTA was Bush41 and then Clinton, who each had their fingerprints all over it. In fact, for a while there were (D)emocrats criticizing Clinton for NAFTA and he actually took some incoming fire for it. This is when the so-called "Talking-Points" ( sorry O'Reilly, you stole it ) and rapid response was invented. They eventually completely pushed ownership of NAFTA onto Bush41 even though Clinton had a lot to do with it. It is a classic example of the uniparty in action only 4 years after Reagan left the White House.
Some of Reagan's duplicitous underlings like Deaver, George Schultz, James Baker, Howard Baker, Duberstein didn't have America's selfish interests at heart and though I can not prove it or even remember it, they would undoubtedly help grease the skids for these kind of deals. They were all positioned to cash in once they left their offices and the scrutiny of their income, such as it was, was finally lifted.
We can't blame Reagan for NAFTA, but we can blame him for selecting Bush for Vice President I guess.
Note how no one talks about Obama being a protectionist because he placed a tariff on tires, or W. Bush because he placed a tariff on steel. But Reagan was a protectionist because . . . .
"Reagan proposed NAFTA as early as 1980, if I recall. Long before Perot even grew up. He also envisioned a FTAA. And, as I mentioned he was instrumental in the formation of the WTO.Note how no one talks about Obama being a protectionist because he placed a tariff on tires, or W. Bush because he placed a tariff on steel. But Reagan was a protectionist because . . . ."
Agree on that 2nd point. But as far as the first, it has to be something else you are thinking about.
Remember the "giant sucking sound"? That was Perot during one of the 1992 debates ( and he was sure right ). NAFTA was still being debated and he was already fighting against it.
If Trump becomes President I propose he give the Presidential Medal Of Foresight to Ross Perot for that, and his herculean Vietnam POW efforts.
So in other words, Perot was correct, and Reagan was incorrect . . . in your opinion.
NAFTA as proposed was free trade. What we did not and do not enforce is fair trade. Foreign governments subsidizing the dumping of goods here turned NAFTA into an economic weapon against us
“Abolish the income tax. Reinstate tariffs. Let China pay our debts.”
Like all taxes on goods, it’s the people who buy the goods who pay the taxes. Let’s say our popcorn is grown and packaged in West Moronica. It normally sells for a dollar a package. It cost West Moronica 25 cents to grow and package it. It costs WM 25 cents to ship. It costs another 15 cents to market and distribute. WM makes .35 profit. Now the government decides to help Iowa compete by charging a tariff of 25 cents to WM. That is added to the cost. The consumer now pays $1.25. West Morinica may see a drop in sales. But chances are, Iowa, which could perform all of the production, distribution and marketing costs for 50 cents and sell profitably at .75 will, instead price its product at $1-$1.2.
Domestic producers lobby for tariffs primarily so they can raise their own prices.
Tariffs and taxes are bad for the consumers and may or may not be good for the producers. The producers may see an increase in profit, but they also have no incentive to improve their product or processes. We saw and still see this in automobiles. There was no essential improvement in the US automobiles until the Japanese started producing a superior product and a better dealership experience. Oh, let’s not forget ergonomic seats even in the low end models and innovations like cup holders and pockets to store things. How much innovation would that have taken Ford or GM? They didn’t care about the consumer until somebody started taking those consumers away.
Any examples?
So in other words, Perot was correct, and Reagan was incorrect . . . in your opinion."
Nope. That's not my opinion.
Perot was correct, and Reagan Bush41/Clinton was incorrect . . . in your pretty much everyones' opinion!
Seriously, NAFTA was not Reagan. Please look it up.
Perot was right. IMHO, the wrong ones were the (R)epublicrats and (D)ummycrats and GOPe establishcrats and New World Ordercrats and Free Tradercrats and La Razacrats and, well, everyone else really.
I believed the nonsense too about harmless "free trade" with Mexico and Canada. I admit now that I was wrong. Hindsight is 20/20. Only Perot and a few others who were all labeled as cranks and conspiratorialists had the foresight. We lost America starting in the Bush41 administration with NAFTA and the Illegal Alien Invasion.
Just ask yourself, if there is some sort of "giant sucking sound" of jobs crossing the border, then why are they coming here to find them?
This year, we have it within our power to take a major step toward a growing global economy and an expanding cycle of prosperity that reaches to all the free nations of this Earth. I'm speaking of the historic free trade agreement negotiated between our country and Canada. And I can also tell you that we're determined to expand this concept, south as well as north. Next month I will be traveling to Mexico, where trade matters will be of foremost concern. And over the next several months, our Congress and the Canadian Parliament can make the start of such a North American accord a reality. Our goal must be a day when the free flow of trade, from the tip of Tierra del Fuego to the Arctic Circle, unites the people of the Western Hemisphere in a bond of mutually beneficial exchange, when all borders become what the U.S.-Canadian border so long has been: a meeting place rather than a dividing line.
--Ronald Reagan, State of the Union Address, 1988. [emphasis added]
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