Taxation

[IEX Totalview]

Originally posted by Timothy Ortiz
The passage of the 16th amendment and the corresponding jump in national revenue must be represented in the game.


Article XVI.
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Proposal and Ratification

The sixteenth amendment to the Constitution of the United States was proposed to the legislatures of the several States by the Sixty-first Congress on the 12th of July, 1909, and was declared, in a proclamation of the Secretary of State, dated the 25th of February, 1913, to have been ratified by 36 of the 48 States. The dates of ratification were: Alabama, August 10, 1909; Kentucky, February 8, 1910; South Carolina, February 19, 1910; Illinois, March 1, 1910; Mississippi, March 7, 1910; Oklahoma, March 10, 1910; Maryland, April 8, 1910; Georgia, August 3, 1910; Texas, August 16, 1910; Ohio, January 19, 1911; Idaho, January 20, 1911; Oregon, January 23, 1911; Washington, January 26, 1911; Montana, January 30, 1911; Indiana, January 30, 1911; California, January 31, 1911; Nevada, January 31, 1911; South Dakota, February 3, 1911; Nebraska, February 9, 1911; North Carolina, February 11, 1911; Colorado, February 15, 1911; North Dakota, February 17, 1911; Kansas, February 18, 1911; Michigan, February 23, 1911; Iowa, February 24, 1911; Missouri, March 16, 1911; Maine, March 31, 1911; Tennessee, April 7, 1911; Arkansas, April 22, 1911 (after having rejected it earlier); Wisconsin, May 26, 1911; New York, July 12, 1911; Arizona, April 6, 1912; Minnesota, June 11, 1912; Louisiana, June 28, 1912; West Virginia, January 31, 1913; New Mexico, February 3, 1913.

Ratification was completed on February 3, 1913.

The amendment was subsequently ratified by Massachusetts, March 4, 1913; New Hampshire, March 7, 1913 (after having rejected it on March 2, 1911).

The amendment was rejected (and not subsequently ratified) by Connecticut, Rhode Island, and Utah

I'm sure it seemed like a good idea at the time.

 

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Originally posted by el freako
I dislike the idea of a much higher rate of taxation during wars, as this is not what usually happened.

Usually wars were funded by borrowing, even WWI was mostly paid for in this way.

The income tax started as a war-finance instrument. Then government started borrowing, first domestically, issuing war-bonds, and then abroad if there was friendly foreign capital available.

 

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Originally posted by peo
Yes but they still printed money and as a result the money became worthless after the value of them was more than the value of the gold they had.
It wasn't a immidiate result but it happend during the time.

Between the 1870s and 1914 the gold standard was universal. The gold standard meant that banknotes could be exchanged for their notational value in gold.

This was in pre-social democratic days - when people actually had some notion of the value of money and government respected the property of tjheir subjects.

 

[el freako]

Originally posted by Hardu
The income tax started as a war-finance instrument. Then government started borrowing, first domestically, issuing war-bonds, and then abroad if there was friendly foreign capital available.

Only the US and UK instituted large increases in taxation during wars AFAIK, so this sould not be something that is available to all nations.
Events would handle those situations better

 

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Well IMO you should be able to raise taxes as any nation during war why not?