The Forgotten Tax Revolt of the 1930s

Wall Street Journal ^ | April 15, 2011 | David T. Beito

[Captain Kirk]

Many historians depict the Great Depression as a turning point when bitter economic realities finally led the middle class to break from laissez-faire tradition and demand bigger government. This is not entirely untrue, but it's only part of what happened.

In its initial phase, the Depression also spawned a powerful movement for smaller government that included tax revolts. These revolts were not only more widespread but often more extreme than any sponsored by the tea party.

Depression-era taxpayers had perhaps even greater reason to be angry than their modern counterparts. Property values plummeted after 1929 but tax reassessments lagged. Overall, taxes nearly doubled to 21.1% of national income in 1932 from 11.6% in 1929, according to a 1940 Tax Policy Institute report.

Meanwhile, unemployment skyrocketed. Local property tax delinquency rose to a record (still standing) of 26.3% in 1933, from 10.1% in 1930. In many places, the tax system broke down and payment became almost voluntary. Throughout the country, Americans formed "taxpayers' leagues" to demand spending cuts, arguing that since they had tightened their belts, politicians should too. According to an article in the National Municipal Review, at least 3,000 such groups had emerged by 1933 compared to only 47 in 1927. Because of tax league pressure, 19 states and numerous localities brought property levies under control by capping mill rates or limiting overall property taxes to a percentage of assessed value.

In 1932, New York Times journalist Anne O'Hare McCormick noted that "the nearest thing to a political revolution in the country is the tax revolt. . . . Taxpayers are wrought up to the point of willingness to give up public services. 'We'll do without county agents,' they say. 'We'll give up the public health service.'" The head of the International City Managers Association bemoaned

[Michigan Bowhunter]

Being a student of history.......history always repeats itself. People are simple. When times are tight, we look for simple solutions.

[TheOldLady]

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[LIBERTARIAN JOE]

It was a different America back then - gov't would actually respond to the will of the people on occasion.

A tax revolt in today's amerika would likely be met by paramilitary forces armed with automatic weapons and armored vehicles.

[vbmoneyspender]

Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius -- and a lot of courage -- to move in the opposite direction.

Everything should be made as simple as possible, but not simpler.

The hardest thing in the world to understand is the income tax.

Albert Einstein

[phockthis]

it’s coming

[Longbow1969]

...The hardest thing in the world to understand is the income tax.

Albert Einstein

Sadly, Einstein was a socialist.

From his article Why Socialism:

I am convinced there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals....

[vbmoneyspender]

You got me there. In the United States, we’ve been pretty lucky that the reins of power have generally been kept out of the hands of intellectuals - until now.

[IronJack]

This country was born out of a tax revolt. It’s sad to think we may have to suffer those labor pains again.

[Retired Greyhound]

While it was intellectuals that founded this country, they were of the classical 18th century variety, rather than 19th century German philosophy inspired intellectuals that followed.

[Captain Kirk]

Let’s hope so!

[east1234]

“A tax revolt in today’s amerika would likely be met by paramilitary forces armed with automatic weapons and armored vehicles.”

Which would generate a very bloody response.

[Justa]

“rather than 19th century German philosophy inspired intellectuals that followed.”

That's a bit obtuse for most to understand.

Enlightenment is better than communism.

I would probably make the point on a contrast between John Locke and Hegel or the maturation of 17th vs. 19th century philosophies.

[Retired Greyhound]

“Enlightenment is better than communism. “

Yes, very well said.

[LIBERTARIAN JOE]

Which would generate a very bloody response

I'd like to think that was true, but I know it's not. A nation that'll sit back and watch the gov't burn to death 80-plus people on live TV, watch them gun down the ones trying to escape the flames, and not even insist someone goes to jail for it, is a nation of sheep that ain't going to rise up over taxes.

And even if we did, we ain't going to beat the military. Despite popular belief, very few soldiers would disobey an order to fire on American civilians, and the gov't is working hard to reduce that "very few" to none.