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" "Until the Civil War, the U.S. government relied almost exclusively on tariffs on imported goods, a practice that provoked conflict between Northern manufacturers who favored tariffs to keep imports out and Southern farmers who did not. An income tax was imposed during the Civil War, but proved so unpopular that it died in 1872. In its place, the government imposed taxes on alcohol and tobacco that accounted for 43 percent of all federal revenue by 1900. Repeated attempts to revive the income tax were thwarted when the Supreme Court declared it unconstitutional in 1895. But the Sixteenth Amendment to the Constitution changed that. Less than eight months after it was ratified in February 1913, Congress enacted an income tax.
David Meyer Wessel (born February 21, 1954) is an American journalist and writer. He has shared two Pulitzer Prizes for journalism. He is director of the Hutchins Center on Fiscal & Monetary Policy at the Brookings Institution and a contributing correspondent to The Wall Street Journal, where he worked for 30 years.
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The Reagan presidency was styled as a turning point in American politics: the end of the New Deal and the beginning of an era in which the government would retreat from the economy. Ronald Reagan made three significant fiscal promises during his campaign for president: cut taxes, rebuild the nation’s defenses, and balance the budget. He delivered on the first two, but not on the third.
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