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To: PeaRidge; Pelham; LS; donmeaker
BJK: "But if you'll do the math, you'll see that tariff income generally amounted to 95% of total receipts..."

Correction:
Actually, the math is posted right there, in "column 2", and does sometimes reach 95% of total revenues, but in a few years falls to around 50%.

So comparing tariff rates to just tariff revenues does not give us the consistent result of "lower rates produce higher revenues."
But those were the results in 1795 and again throughout the 1850s.

In other years when tariff rates went down significantly (1815, 1835), tariff income fell only slightly.
The big exception is 1840, when both rates and income fell significantly.
No doubt the reasons involve political and economic complexities of that particular age.

Of course, I like "lower rates produce higher revenues" better, and that was one of my points, but obviously a strong and growing economy is also necessary.

One should never read this data to suggest that it's a good idea to raise taxes in the teeth of an economic downturn.

209 posted on 04/06/2012 7:16:38 AM PDT by BroJoeK (a little historical perspective....)
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To: BroJoeK; Pelham; LS; donmeaker
To Pelham, LS, and donmeaker, please pardon this boring post, but it has to be addressed.

BroJoeK..........One last time.

You cannot draw the conclusions you have been making based on your data from Wiki.

Whoever posted this table on Wiki took this data from an extensive data source without factoring changes in inventory practices, tariff law, and shipping accounting. There are many variables that are included but not foot marked in this chart. For example, up until 1846, overseas reexports were included in the value of the goods taxed, but were later factored out. That makes conclusions from any comparisons of data sets on each side of that year simply false.

In any given year, he tariff rates may have remained the same on average, but the type of articles that were to be taxed were changed. For example, tariff rates may have averaged 20%, but in one year that may be 20% on 50 articles, and next year it may be 20% on 200 items. That would affect the scope of the tariff and therefore the amount. That is not given by Wiki.

You do not know the value of goods stored over periods of one to three years and later sold, according to the new warehousing laws, first in 1848, and again revised in 1854. That affected the volume of tariff collected in a given year, but not the rate of taxation.

So, maybe now you can see that none of your conclusions are correct because you do not have the corrected data.

If you want to engage in this type of commentary, I would suggest that you go on line to the Historical Statistics of the United States, section 317.3, and begin with page 106. But to save you the trouble, someone has already done an analysis for you: http://onlinelibrary.wiley.com/doi/10.1093/ei/40.3.428/abstract

217 posted on 04/09/2012 2:39:30 PM PDT by PeaRidge
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