To: GOPcapitalist
You suppose that numbers constitute the strength of government in this day. I tell you that it is not blood; it is the military chest; it is the almighty dollar. When you have lost your market; when your operatives are turned out; when your capitalists are broken, will you go to direct taxation?" - Louis T. Wigfall, United States Senate, December 1860
"Direct taxation" at least Wigfall saw it coming. The party of protectionist tariffs is now the party of protectionist free trade, now that the manufacturing and banking class depend on it. And direct taxation has removed all restraints on growth/power of the fedgov.
6 posted on
08/09/2002 4:38:43 AM PDT by
steve50
To: steve50
"Direct taxation" at least Wigfall saw it coming. The party of protectionist tariffs is now the party of protectionist free trade, now that the manufacturing and banking class depend on it. And direct taxation has removed all restraints on growth/power of the fedgov. Exactly. Before 1860 taxation debates were over what level should be implemented indirectly as the tariff. The free traders wanted a low range tariff to simply fund the government's basics. The protectionists wanted a high range tariff to boost their industries in competition and to fund government-backed incentives to those same industries.
After that the debate shifted to being between indirect and direct taxation. Direct taxation was chosen and is now the sole issue.
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