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These Truths: A History of the United States (Jill Lepore) - 1 views

  • It was meant to mark the start of a new era, in which the course of history might be made predictable and a government established that would be ruled not by accident and force but by reason and choice. The origins of that idea, and its fate, are the story of American history.
  • It seems to have been reserved to the people of this country, by their conduct and example, to decide the important question, whether societies of men are really capable or not of establishing good government from reflection and choice, or whether they are forever destined to depend for their political constitutions on accident and force.6 This was the question of that autumn. And, in a way, it has been the question of every season since,
  • I once came across a book called The Constitution Made Easy.7 The Constitution cannot be made easy. It was never meant to be easy.
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  • THE AMERICAN EXPERIMENT rests on three political ideas—“these truths,” Thomas Jefferson called them—political equality, natural rights, and the sovereignty of the people.
  • After Benjamin Franklin read Jefferson’s draft, he picked up his quill, scratched out the words “sacred & undeniable,” and suggested that “these truths” were, instead, “self-evident.” This was more than a quibble. Truths that are sacred and undeniable are God-given and divine, the stuff of religion. Truths that are self-evident are laws of nature, empirical and observable, the stuff of science. This divide has nearly rent the Republic apart.
  • The real dispute is between “these truths” and the course of events: Does American history prove these truths, or does it belie them?
  • The United States rests on a dedication to equality, which is chiefly a moral idea, rooted in Christianity, but it rests, too, on a dedication to inquiry, fearless and unflinching. Its founders agreed with the Scottish philosopher and historian David Hume, who wrote, in 1748, that “Records of Wars, Intrigues, Factions, and Revolutions are so many Collections of Experiments.”9 They believed that truth is to be found in ideas about morality but also in the study of history.
  • understanding history as a form of inquiry—not as something easy or comforting but as something demanding and exhausting—was central to the nation’s founding. This, too, was new.
  • A new kind of historical writing, less memorial and more unsettling, only first emerged in the fourteenth century. “History is a philosophical science,” the North African Muslim scholar Ibn Khaldun wrote in 1377, in the prologue to his history of the world, in which he defined history as the study “of the causes and origins of existing things.”11
  • Only by fits and starts did history become not merely a form of memory but also a form of investigation, to be disputed, like philosophy, its premises questioned, its evidence examined, its arguments countered.
  • Declaring independence was itself an argument about the relationship between the present and the past, an argument that required evidence of a very particular kind: historical evidence. That’s why most of the Declaration of Independence is a list of historical claims. “To prove this,” Jefferson wrote, “let facts be submitted to a candid world.”
  • In an attempt to solve this problem, the earliest historians of the United States decided to begin their accounts with Columbus’s voyage, stitching 1776 to 1492. George Bancroft published his History of the United States from the Discovery of the American Continent to the Present in 1834, when the nation was barely more than a half-century old, a fledgling, just hatched. By beginning with Columbus, Bancroft made the United States nearly three centuries older than it was, a many-feathered old bird.
  • In 1787, then, when Alexander Hamilton asked “whether societies of men are really capable or not of establishing good government from reflection and choice, or whether they are forever destined to depend for their political constitutions on accident and force,” that was the kind of question a scientist asks before beginning an experiment. Time alone would tell. But time has passed. The beginning has come to an end. What, then, is the verdict of history?
  • In deciding what to leave in and what to leave out, I’ve confined myself to what, in my view, a people constituted as a nation in the early twenty-first century need to know about their own past, mainly because this book is meant to double as an old-fashioned civics book, an explanation of the origins and ends of democratic institutions, from the town meeting to the party system, from the nominating convention to the secret ballot, from talk radio to Internet polls. This book is chiefly a political
  • Aside from being a brief history of the United States and a civics primer, this book aims to be something else, too: it’s an explanation of the nature of the past. History isn’t only a subject; it’s also a method.
  • The truths on which the nation was founded are not mysteries, articles of faith, never to be questioned, as if the founding were an act of God, but neither are they lies, all facts fictions, as if nothing can be known, in a world without truth.
  • Between reverence and worship, on the one side, and irreverence and contempt, on the other, lies an uneasy path, away from false pieties and petty triumphs over people who lived and died and committed both their acts of courage and their sins and errors long before we committed ours. “We cannot hallow this ground,” Lincoln said at Gettysburg. We are obliged, instead, to walk this ground, dedicating ourselves to both the living and the dead.
  • studying history is like that, looking into one face and seeing, behind it, another, face after face after face. “Know whence you came,” Baldwin told his nephew.17 The past is an inheritance, a gift and a burden. It can’t be shirked. You carry it everywhere. There’s nothing for it but to get to know it.
  • Nature takes one toll, malice another. History is the study of what remains, what’s left behind, which can be almost anything, so long as it survives the ravages of time and war: letters, diaries, DNA, gravestones, coins, television broadcasts, paintings, DVDs, viruses, abandoned Facebook pages, the transcripts of congressional hearings, the ruins of buildings. Some of these things are saved by chance or accident, like the one house that, as if by miracle, still stands after a hurricane razes a town. But most of what historians study survives because it was purposely kept—placed
  • As nation-states emerged, they needed to explain themselves, which they did by telling stories about their origins, tying together ribbons of myths, as if everyone in the “English nation,” for instance, had the same ancestors, when, of course, they did not. Very often, histories of nation-states are little more than myths that hide the seams that stitch the nation to the state.15
  • When the United States declared its independence in 1776, plainly, it was a state, but what made it a nation? The fiction that its people shared a common ancestry was absurd on its face; they came from all over, and, having waged a war against England, the very last thing they wanted to celebrate was their Englishness.
  • Facts, knowledge, experience, proof. These words come from the law. Around the seventeenth century, they moved into what was then called “natural history”: astronomy, physics, chemistry, geology. By the eighteenth century they were applied to history and to politics, too. These truths: this was the language of reason, of enlightenment, of inquiry, and of history.
  • Against conquest, slaughter, and slavery came the urgent and abiding question, “By what right?”
  • Yet the origins of the United States date to 1492 for another, more troubling reason: the nation’s founding truths were forged in a crucible of violence, the products of staggering cruelty, conquest and slaughter, the assassination of worlds.
  • Locke, spurred both by a growing commitment to religious toleration and by a desire to distinguish English settlement from Spanish conquest, stressed the lack of cultivation as a better justification for taking the natives’ land than religious difference, an emphasis with lasting consequences.
  • Unlike Polo and Mandeville, Columbus did not make a catalogue of the ways and beliefs of the people he met (only later did he hire Pané to do that). Instead, he decided that the people he met had no ways and beliefs. Every difference he saw as an absence.22 Insisting that they had no faith and no civil government and were therefore infidels and savages who could not rightfully own anything, he claimed possession of their land, by the act of writing. They were a people without truth; he would make his truth theirs. He would tell them where the dead go.
  • It became commonplace, inevitable, even, first among the Spanish, and then, in turn, among the French, the Dutch, and the English, to see their own prosperity and good health and the terrible sicknesses suffered by the natives as signs from God. “Touching these savages, there is a thing that I cannot omit to remark to you,” one French settler wrote: “it appears visibly that God wishes that they yield their place to new peoples.” Death convinced them at once of their right and of the truth of their faith. “The natives, they are all dead of small Poxe,” John Winthrop wrote when he arrived in New England in 1630: “the Lord hathe cleared our title to what we possess.”
  • In much of New Spain, the mixed-race children of Spanish men and Indian women, known as mestizos, outnumbered Indians; an intricate caste system marked gradations of skin color, mixtures of Europeans, Native Americans, and Africans, as if skin color were like dyes made of plants, the yellow of sassafras, the red of beets, the black of carob. Later, the English would recognize only black and white, a fantasy of stark and impossible difference, of nights without twilight and days without dawns. And yet both regimes of race, a culture of mixing or a culture of pretending not to mix, pressed upon the brows of every person of the least curiosity the question of common humanity: Are all peoples one?
  • Elizabeth’s best defender argued that if God decided “the female should rule and govern,” it didn’t matter that women were “weake in nature, feable in bodie, softe in courage,” because God would make every right ruler strong. In any case, England’s constitution abided by a “rule mixte,” in which the authority of the monarch was checked by the power of Parliament; also, “it is not she that ruleth but the lawes.” Elizabeth herself called on yet another authority: the favor of the people.48 A mixed constitution, the rule of law, the will of the people: these were English ideas that Americans would one day make their own, crying, “Liberty!”
  • In the brutal, bloody century between Columbus’s voyage and John White’s, an idea was born, out of fantasy, out of violence, the idea that there exists in the world a people who live in an actual Garden of Eden, a state of nature, before the giving of laws, before the forming of government. This imagined history of America became an English book of genesis, their new truth. “In the beginning,” the Englishman John Locke would write, “all the world was America.” In America, everything became a beginning.
  • England’s empire would have a different character than that of either Spain or France. Catholics could make converts by the act of baptism, but Protestants were supposed to teach converts to read the Bible; that meant permanent settlements, families, communities, schools, and churches. Also, England’s empire would be maritime—its navy was its greatest strength. It would be commercial. And, of greatest significance for the course of the nation that would grow out of those settlements, its colonists would be free men, not vassals, guaranteed their “English liberties.”
  • Beginning with the Virginia charter, the idea of English liberties for English subjects was planted on American soil and, with it, the king’s claim to dominion, a claim that rested on the idea that people like Powhatan and his people lived in darkness and without government, no matter that the English called their leaders kings.
  • Twenty Englishmen were elected to the House of Burgesses. Twenty Africans were condemned to the house of bondage. Another chapter opened in the American book of genesis: liberty and slavery became the American Abel and Cain.
  • To build his case against the king, Coke dusted off a copy of an ancient and almost entirely forgotten legal document, known as Magna Carta (literally, the “great charter”), in which, in the year 1215, King John had pledged to his barons that he would obey the “law of the land.” Magna Carta wasn’t nearly as important as Coke made it out to be, but by arguing for its importance, he made it important, not only for English history, but for American history, too, tying the political fate of everyone in England’s colonies to the strange doings of a very bad king from the Middle Ages.
  • Magna Carta explains a great deal about how it is that some English colonists would one day come to believe that their king had no right to rule them and why their descendants would come to believe that the United States needed a written constitution. But Magna Carta played one further pivotal role, the role it played in the history of truth—a history that had taken a different course in England than in any other part of Europe.
  • The most crucial right established under Magna Carta was the right to a trial by jury.
  • in 1215, the pope banned trial by ordeal. In Europe, it was replaced by a new system of divine judgment: judicial torture. But in England, where there existed a tradition of convening juries to judge civil disputes—like disagreements over boundaries between neighboring freeholds—trial by ordeal was replaced not by judicial torture but by trial by jury.
  • This turn marked the beginning of a new era in the history of knowledge: it required a new doctrine of evidence and new method of inquiry and eventually led to the idea that an observed or witnessed act or thing—the substance, the matter, of fact—is the basis of truth. A judge decided the law; a jury decided the facts. Mysteries were matters of faith, a different kind of truth, known only to God.
  • The age of mystery began to wane, and, soon, the culture of fact spread from law to government.
  • There would never be very many Africans in New England, but New Englanders would have slave plantations, on the distant shores. Nearly half of colonial New Englanders’ wealth would come from sugar grown by West Indian slaves.
  • One million Europeans migrated to British America between 1600 and 1800 and two and a half million Africans were carried there by force over that same stretch of centuries, on ships that sailed past one another by day and by night.42 Africans died faster, but as a population of migrants, they outnumbered Europeans two and a half to one.
  • In the last twenty-five years of the seventeenth century, English ships, piloted by English sea captains, crewed by English sailors, carried more than a quarter of a million men, women, and children across the ocean, shackled in ships’ holds.44 Theirs was not a ship of state crossing a sea of troubles, another Mayflower, their bond a covenant. Theirs was a ship of slavery, their bonds forged in fire. They whispered and wept; they screamed and sat in silence. They grew ill; they grieved; they died; they endured.
  • By what right did the English hold these people as their slaves?
  • Under Roman law, all men are born free and can only be made slaves by the law of nations, under certain narrow conditions—for instance, when they’re taken as prisoners of war, or when they sell themselves as payment of debt. Aristotle had disagreed with Roman law, insisting that some men are born slaves. Neither of these traditions from antiquity proved to be of much use to English colonists attempting to codify their right to own slaves, because laws governing slavery, like slavery itself, had disappeared from English common law by the fourteenth century. Said one Englishman in Barbados in 1661, there was “no track to guide us where to walk nor any rule sett us how to govern such Slaves.”46
  • With no track or rule to guide them, colonial assemblies adopted new practices and devised new laws with which they attempted to establish a divide between “blacks” and “whites.”
  • Adopting these practices and passing these laws required turning English law upside down, because much in existing English law undermined the claims of owners of people. In 1655, a Virginia woman with an African mother and an English father sued for her freedom by citing English common law, under which children’s status follows that of their father, not their mother. In 1662, Virginia’s House of Burgesses answered doubts about “whether children got by any Englishman upon a Negro woman should be slave or ffree” by reaching back to an archaic Roman rule, partus sequitur ventrem (you are what your mother was). Thereafter, any child born of a woman who was a slave inherited her condition.
  • By giving Americans a more ancient past, he hoped to make America’s founding appear inevitable and its growth inexorable, God-ordained. He also wanted to celebrate the United States, not as an offshoot of England, but instead as a pluralist and cosmopolitan nation, with ancestors all over the world.
  • No book should be censored before publication, Milton argued (though it might be condemned after printing), because truth could only be established if allowed to do battle with lies. “Let her and falsehood grapple,” he urged, since, “whoever knew Truth to be put to the worst in a free and open encounter?” This view depended on an understanding of the capacity of the people to reason. The people, Milton insisted, are not “slow and dull, but of a quick, ingenious and piercing spirit, acute to invent, subtle and sinewy to discourse, not beneath the reach of any point the highest that human capacity can soar to.”52
  • All men, Locke argued, are born equal, with a natural right to life, liberty, and property; to protect those rights, they erect governments by consent. Slavery, for Locke, was no part either of a state of nature or of civil society. Slavery was a matter of the law of nations, “nothing else, but the state of war continued, between a lawful conqueror and a captive.” To introduce slavery in the Carolinas, then, was to establish, as fundamental to the political order, an institution at variance with everything about how Locke understood civil society.
  • Long before shots were fired at Lexington and Concord, long before George Washington crossed the Delaware, long before American independence was thought of, or even thinkable, a revolutionary tradition was forged, not by the English in America, but by Indians waging wars and slaves waging rebellions. They revolted again and again and again. Their revolutions came in waves that lashed the land. They asked the same question, unrelentingly: By what right are we ruled?
  • Rebellion hardened lines between whites and blacks. Before Bacon and his men burned Jamestown, poor Englishmen had very little political power. As many as three out of every four Englishmen and women who sailed to the colonies were either debtors or convicts or indentured servants; they weren’t slaves, but neither were they free.61 Property requirements for voting meant that not all free white men could vote. Meanwhile, the fact that slaves could be manumitted by their masters meant that it was possible to be both black and free and white and unfree. But after Bacon’s Rebellion, free white men were granted the right to vote, and it became nearly impossible for black men and women to secure their freedom. By 1680, one observer could remark that “these two words, Negro and Slave” had “grown Homogeneous and convertible”: to be black was to be a slave.
  • Benjamin Franklin eventually settled in the tidy Quaker town of Philadelphia and began printing his own newspaper, the Pennsylvania Gazette, in 1729. In its pages, he fought for freedom of the press. In a Miltonian 1731 “Apology for Printers,” he observed “that the Opinions of Men are almost as various as their Faces” but that “Printers are educated in the Belief, that when Men differ in Opinion, both Sides ought equally to have the Advantage of being heard by the Publick; and that when Truth and Error have fair Play, the former is always an overmatch for the latter.”
  • But if the culture of the fact hadn’t yet spread to newspapers, it had spread to history. In Leviathan, Thomas Hobbes had written that “The register of Knowledge of Fact is called History.”74 One lesson Americans would learn from the facts of their own history had to do with the limits of the freedom of the press, and this was a fact on which they dwelled, and a liberty they grew determined to protect.
  • Slavery does not exist outside of politics. Slavery is a form of politics, and slave rebellion a form of violent political dissent. The Zenger trial and the New York slave conspiracy were much more than a dispute over freedom of the press and a foiled slave rebellion: they were part of a debate about the nature of political opposition, and together they established its limits. Both Cosby’s opponents and Caesar’s followers allegedly plotted to depose the governor. One kind of rebellion was celebrated, the other suppressed—a division that would endure.
  • In American history, the relationship between liberty and slavery is at once deep and dark: the threat of black rebellion gave a license to white political opposition.
  • This, too, represented a kind of revolution: Whitefield emphasized the divinity of ordinary people, at the expense of the authority of their ministers.
  • he wrote in 1751 an essay about the size of the population, called “Observations concerning the Increase of Mankind, Peopling of Countries, &c.”
  • Franklin guessed the population of the mainland colonies to be about “One Million English Souls,” and his calculations suggested that this number would double every twenty-five years. At that rate, in only a century, “the greatest Number of Englishmen will be on this Side the Water.” Franklin’s numbers were off; his estimates weren’t too high; they were too low. At the time, more than 1.5 million people lived in Britain’s thirteen mainland colonies. Those colonies were far more densely settled than New France or New Spain. Only 60,000 French settlers lived in Canada and 10,000 more in Louisiana. New Spain was even more thinly settled.
  • he wrote about a new race, a people who were “white.” “The Number of purely white People in the World is proportionably very small,” Franklin began. As he saw it, Africans were “black”; Asians and Native Americans were “tawny”; Spaniards, Italians, French, Russians, Swedes, and Germans were “swarthy.” That left very few people, and chiefly the English, as the only “white people” in the world. “I could wish their Numbers were increased,” Franklin said, adding, wonderingly, “But perhaps I am partial to the Complexion of my Country, for such Kind of Partiality is natural to Mankind.”
  • Franklin’s “JOIN, or DIE” did some of that, too: it offered a lesson about the rulers and the ruled, and the nature of political communities. It made a claim about the colonies: they were parts of a whole.
  • When Benjamin Franklin began writing his autobiography, in 1771, he turned the story of his own escape—running away from his apprenticeship to his brother James—into a metaphor for the colonies’ growing resentment of parliamentary rule. James’s “harsh and tyrannical Treatment,” Franklin wrote, had served as “a means of impressing me with that Aversion to arbitrary Power that has stuck to me thro’ my whole Life.”7 But that was also the story of every runaway slave ad, testament after testament to an aversion to arbitrary power.
  • The American Revolution did not begin in 1775 and it didn’t end when the war was over. “The success of Mr. Lay, in sowing the seeds of . . . a revolution in morals, commerce, and government, in the new and in the old world, should teach the benefactors of mankind not to despair, if they do not see the fruits of their benevolent propositions, or undertakings, during their lives,” Philadelphia doctor Benjamin Rush later wrote.
  • There were not one but two American revolutions at the end of the eighteenth century: the struggle for independence from Britain, and the struggle to end slavery. Only one was won.
  • The Revolution was at its most radical in the challenge it presented to the institution of slavery and at its most conservative in its failure to meet that challenge. Still, the institution had begun to break, like a pane of glass streaked with cracks but not yet shattered.
  • “I wish our Poor Distracted State would atend to the many good Lessons” of history, Jane Franklin wrote to her brother, and not “keep always in a Flame.”21
  • After Annapolis, Madison went home to Virginia and resumed his course of study. In April of 1787, he drafted an essay called “Vices of the Political System of the United States.” It took the form of a list of eleven deficiencies,
  • it closed with a list of causes for these vices, which he located primarily “in the people themselves.” By this last he meant the danger that a majority posed to a minority: “In republican Government the majority however composed, ultimately give the law. Whenever therefore an apparent interest or common passion unites a majority what is to restrain them from unjust violations of the rights and interests of the minority, or of individuals?”27 What force restrains good men from doing bad things? Honesty, character, religion—these, history demonstrated, were not to be relied upon. No, the only force that could restrain the tyranny of the people was the force of a well-constructed constitution. It would have to be as finely wrought as an iron gate.
  • At the convention, it proved impossible to set the matter of slavery aside, both because the question of representation turned on it and because any understanding of the nature of tyranny rested on it. When Madison argued about the inevitability of a majority oppressing a minority, he cited ancient history, and told of how the rich oppressed the poor in Greece and Rome. But he cited, too, modern American history. “We have seen the mere distinction of color made in the most enlightened period of time, the ground of the most oppressive dominion ever exercised by man over man.”40
  • If not for the three-fifths rule, the representatives of free states would have outnumbered representatives of slave states by 57 to 33.44
  • Wilson, half Franklin’s age, read his remarks instead. “Mr. President,” he began, addressing Washington, “I confess that there are several parts of this constitution which I do not at present approve, but I am not sure I shall never approve them.” He suggested that he might, one day, change his mind. “For having lived long, I have experienced many instances of being obliged by better information, or fuller consideration, to change opinions even on important subjects, which I once thought right, but found to be otherwise. It is therefore that the older I grow, the more apt I am to doubt my own judgment, and to pay more respect to the judgment of others.” Hoping to pry open the minds of delegates who were closed to the compromise before them, he reminded them of the cost of zealotry. “Most men indeed as well as most sects in Religion, think themselves in possession of all truth, and that wherever others differ from them it is so far error.” But wasn’t humility the best course, in such circumstances? “Thus I consent, Sir, to this Constitution,” he closed, “because I expect no better, and because I am not sure, that it is not the best.”
  • Except for the Massachusetts Constitution, in 1780, and the second New Hampshire Constitution, in 1784, no constitution, no written system of government, had ever before been submitted to the people for their approval. “This is a new event in the history of mankind,” said the governor of Connecticut at his state’s ratification convention.
  • Nearly everything Washington did set a precedent. What would have happened if he had decided, before taking that oath of office, to emancipate his slaves? He’d grown disillusioned with slavery; his own slaves, and the greater number of slaves owned by his wife, were, to him, a moral burden, and he understood very well that for all the wealth generated by forced, unpaid labor, the institution of slavery was a moral burden to the nation. There is some evidence—slight though it is—that Washington drafted a statement announcing that he intended to emancipate his slaves before assuming the presidency. (Or maybe that statement, like Washington’s inaugural address, had been written by Hamilton, a member of New York’s Manumission Society.) This, too, Washington understood, would have established a precedent: every president after him would have had to emancipate his slaves. And yet he would not, could not, do it.65 Few of Washington’s decisions would have such lasting and terrible consequences as this one failure to act.
  • In the century and a half between the Connecticut charter and the 1787 meeting of the constitutional convention lies an entire revolution—not just a political revolution but also a religious revolution. So far from establishing a religion, the Constitution doesn’t even mention “God,” except in naming the date (“the year of our Lord . . .”). At a time when all but two states required religious tests for office, the Constitution prohibited them. At a time when all but three states still had an official religion, the Bill of Rights forbade the federal government from establishing one. Most Americans believed, with Madison, that religion can only thrive if it is no part of government, and that a free government can only thrive if it is no part of religion.
  • The replacement of debtors’ prison with bankruptcy protection would change the nature of the American economy, spurring investment, speculation, and the taking of risks.
  • as early as 1791, Madison had begun to revise his thinking. In an essay called “Public Opinion,” he considered a source of instability particular to a large republic: the people might be deceived. “The larger a country, the less easy for its real opinion to be ascertained,” he explained. That is, factions might not, in the end, consist of wise, knowledgeable, and reasonable men. They might consist of passionate, ignorant, and irrational men, who had been led to hold “counterfeit” opinions by persuasive men. (Madison was thinking of Hamilton and his ability to gain public support for his financial plan.)
  • The way out of this political maze was the newspaper. “A circulation of newspapers through the entire body of the people,” he explained, “is equivalent to a contraction of territorial limits.” Newspapers would make the country, effectively, smaller.90 It was an ingenious idea. It would be revisited by each passing generation of exasperated advocates of republicanism. The newspaper would hold the Republic together; the telegraph would hold the Republic together; the radio would hold the Republic together; the Internet would hold the Republic together. Each time, this assertion would be both right and terribly wrong.
  • Newspapers in the early republic weren’t incidentally or inadvertently partisan; they were entirely and enthusiastically partisan. They weren’t especially interested in establishing facts; they were interested in staging a battle of opinions. “Professions of impartiality I shall make none,” wrote a Federalist printer. “They are always useless, and are besides perfect nonsense.”92
  • Washington’s Farewell Address consists of a series of warnings about the danger of disunion. The North and the South, the East and the West, ought not to consider their interests separate or competing, Washington urged: “your union ought to be considered as a main prop of your liberty.” Parties, he warned, were the “worst enemy” of every government, agitating “the community with ill-founded jealousies and false alarms,” kindling “the animosity of one part against another,” and even fomenting “riot and insurrection.”
  • As to the size of the Republic, “Is there a doubt whether a common government can embrace so large a sphere? Let experience solve it.” The American experiment must go on. But it could only thrive if the citizens were supported by religion and morality, and if they were well educated. “Promote, then, as an object of primary importance, institutions for the general diffusion of knowledge,” he urged. “In proportion as the structure of a government gives force to public opinion, it is essential that public opinion should be enlightened.”95
  • “Passion” or variants of the word appear seven times in the Farewell; it is the source of every problem; reason is its only remedy. Passion is a river. There would be no changing its course.
  • Adams and Jefferson lived in an age of quantification. It began with the measurement of time. Time used to be a wheel that turned, and turned again; during the scientific revolution, time became a line. Time, the easiest quantity to measure, became the engine of every empirical inquiry: an axis, an arrow. This new use and understanding of time contributed to the idea of progress—if time is a line instead of a circle, things can get better and even better, instead of forever rising and falling in endless cycles, like the seasons. The idea of progress animated American independence and animated, too, the advance of capitalism.
  • The quantification of time led to the quantification of everything else: the counting of people, the measurement of their labor, and the calculation of profit as a function of time. Keeping time and accumulating wealth earned a certain equivalency. “Time is money,” Benjamin Franklin used to say.
  • The two-party system turned out to be essential to the strength of the Republic. A stable party system organizes dissent. It turns discontent into a public good. And it insures the peaceful transfer of power, in which the losing party willingly, and without hesitation, surrenders its power to the winning party.
  • Behind Madison’s remarks about “lessening the proportion of slaves to the free people,” behind Jefferson’s tortured calculations about how many generations would have to pass before his own children could pass for “white,” lay this hard truth: none of these men could imagine living with descendants of Africans as political equals.
  • If the battle between John Adams and Thomas Jefferson had determined whether aristocracy or republicanism would prevail (and, with Jefferson, republicanism won), the battle between Andrew Jackson and John Quincy Adams would determine whether republicanism or democracy would prevail (and, with Jackson, democracy would, eventually, win). Jackson’s rise to power marked the birth of American populism. The argument of populism is that the best government is that most closely directed by a popular majority.
  • He was provincial, and poorly educated. (Later, when Harvard gave Jackson an honorary doctorate, John Quincy Adams refused to attend the ceremony, calling him “a barbarian who could not write a sentence of grammar and hardly could spell his own name.”)68 He had a well-earned reputation for being ferocious, ill-humored, and murderous, on the battlefield and off. When he ran for president, he had served less than a year in the Senate. Of his bid for the White House Jefferson declared, “He is one of the most unfit men I know of for such a place.”69 Jackson made a devilishly shrewd decision. He would make his lack of certain qualities—judiciousness, education, political experience—into strengths.
  • Eaton, who ran Jackson’s campaign, shrewdly revised his Life of Andrew Jackson, deleting or dismissing everything in Jackson’s past that looked bad and lavishing attention on anything that looked good and turning into strengths what earlier had been considered weaknesses: Eaton’s Jackson wasn’t uneducated; he was self-taught. He wasn’t ill-bred; he was “self-made.”
  • Watching the rise of American democracy, an aging political elite despaired, and feared that the Republic could not survive the rule of the people. Wrote John Randolph of Virginia, “The country is ruined past redemption.”
  • “The first principle of our system,” Jackson said, “is that the majority is to govern.” He bowed to the people. Then, all at once, the people nearly crushed him with their affection.
  • The democratization of American politics was hastened by revivalists like Stewart who believed in the salvation of the individual through good works and in the equality of all people in the eyes of God. Against that belief stood the stark and brutal realities of an industrializing age, the grinding of souls.
  • The great debates of the middle decades of the nineteenth century had to do with the soul and the machine. One debate merged religion and politics. What were the political consequences of the idea of the equality of souls? Could the soul of America be redeemed from the nation’s original sin, the Constitution’s sanctioning of slavery?
  • Another debate merged politics and technology. Could the nation’s new democratic traditions survive in the age of the factory, the railroad, and the telegraph? If all events in time can be explained by earlier events in time, if history is a line, and not a circle, then the course of events—change over time—is governed by a set of laws, like the laws of physics, and driven by a force, like gravity. What is that force? Is change driven by God, by people, or by machines? Is progress the progress of Pilgrim’s Progress, John Bunyan’s 1678 allegory—the journey of a Christian from sin to salvation? Is progress the extension of suffrage, the spread of democracy? Or is progress invention, the invention of new machines?
  • A distinctively American idea of progress involved geography as destiny, picturing improvement as change not only over time but also over space.
  • If the sincerity of converts was often dubious, another kind of faith was taking deeper root in the 1820s, an evangelical faith in technological progress, an unquestioning conviction that each new machine was making the world better. That faith had a special place in the United States, as if machines had a distinctive destiny on the American continent. In prints and paintings, “Progress” appeared as a steam-powered locomotive, chugging across the continent, unstoppable. Writers celebrated inventors as “Men of Progress” and “Conquerors of Nature” and lauded their machines as far worthier than poetry. The triumph of the sciences over the arts meant the defeat of the ancients by the moderns. The genius of Eli Whitney, hero of modernity, was said to rival that of Shakespeare; the head of the U.S. Patent Office declared the steamboat “a mightier epic” than the Iliad.18
  • To Jackson’s supporters, his election marked not degeneration but a new stage in the history of progress. Nowhere was this argument made more forcefully, or more influentially, than in George Bancroft’s History of the United States from the Discovery of the American Continent to the Present. The book itself, reviewers noted, voted for Jackson. The spread of evangelical Christianity, the invention of new machines, and the rise of American democracy convinced Bancroft that “humanism is steady advancing,” and that “the advance of liberty and justice is certain.” That advance, men like Bancroft and Jackson believed, required Americans to march across the continent, to carry these improvements from east to west, the way Jefferson had pictured it. Democracy, John O’Sullivan, a New York lawyer and Democratic editor, argued in 1839, is nothing more or less than “Christianity in its earthly aspect.” O’Sullivan would later coin the term “manifest destiny” to describe this set of beliefs, the idea that the people of the United States were fated “to over spread and to possess the whole of the continent which Providence has given for the development of the great experiment of liberty.”23
  • To evangelical Democrats, Democracy, Christianity, and technology were levers of the same machine. And yet, all along, there were critics and dissenters and objectors who saw, in the soul of the people, in the march of progress, in the unending chain of machines, in the seeming forward movement of history, little but violence and backwardness and a great crushing of men, women, and children. “Oh, America, America,” Maria Stewart cried, “foul and indelible is thy stain!”24
  • The self-evident, secular truths of the Declaration of Independence became, to evangelical Americans, the truths of revealed religion. To say that this marked a turn away from the spirit of the nation’s founding is to wildly understate the case. The United States was founded during the most secular era in American history, either before or since. In the late eighteenth century, church membership was low, and anticlerical feeling was high.
  • The United States was not founded as a Christian nation. The Constitution prohibits religious tests for officeholders. The Bill of Rights forbids the federal government from establishing a religion, James Madison having argued that to establish
  • The separation of church and state allowed religion to thrive; that was one of its intentions. Lacking an established state religion, Americans founded new sects, from Shakers to Mormons, and rival Protestant denominations sprung up in town after town. Increasingly, the only unifying, national religion was a civil religion, a belief in the American creed. This faith bound the nation together, and provided extraordinary political stability in an era of astonishing change,
  • Slavery wasn’t an aberration in an industrializing economy; slavery was its engine. Factories had mechanical slaves; plantations had human slaves. The power of machines was measured by horsepower, the power of slaves by hand power. A healthy man counted as “two hands,” a nursing woman as a “half-hand,” a child as a “quarter-hand.”
  • With Walker, the antislavery argument for gradual emancipation, with compensation for slave owners, became untenable. Abolitionists began arguing for immediate emancipation. And southern antislavery societies shut their doors. As late as 1827, the number of antislavery groups in the South had outnumbered those in the North by more than four to one. Southern antislavery activists were usually supporters of colonization, not of emancipation. Walker’s Appeal ended the antislavery movement in the South and radicalized it in the North.
  • The rebellion rippled across the Union. The Virginia legislature debated the possibility of emancipating its slaves, fearing “a Nat Turner might be in every family.” Quakers submitted a petition to the state legislature calling for abolition. The petition was referred to a committee, headed by Thomas Jefferson’s thirty-nine-year-old grandson, Thomas Jefferson Randolph, who proposed a scheme of gradual emancipation. Instead, the legislature passed new laws banning the teaching of slaves to read and write, and prohibiting, too, teaching slaves about the Bible.43 In a nation founded on a written Declaration, made sacred by evangelicals during a religious revival, reading about equality became a crime.
  • One consequence of the rise of Jacksonian democracy and the Second Great Awakening was the participation of women in the reformation of American politics by way of American morals. When suffrage was stripped of all property qualifications, women’s lack of political power became starkly obvious. For women who wished to exercise power, the only source of power seemingly left to them was their role as mothers, which, they suggested, rendered them morally superior to men—more loving, more caring, and more responsive to the cries of the weak.
  • Purporting to act less as citizens than as mothers, cultivating the notion of “republican motherhood,” women formed temperance societies, charitable aid societies, peace societies, vegetarian societies, and abolition societies. The first Female Anti-Slavery Society was founded in Boston in 1833; by 1837, 139 Female Anti-Slavery Societies had been founded across the country,
  • After 1835, she never again spoke in public. As Catherine Beecher argued in 1837, in An Essay on Slavery and Abolitionism, with Reference to the Duty of American Females, “If the female advocate chooses to come upon a stage, and expose her person, dress, and elocution to public criticism, it is right to express disgust.”
  • Jacksonian democracy distributed political power to the many, but industrialization consolidated economic power in the hands of a few. In Boston, the top 1 percent of the population controlled 10 percent of wealth in 1689, 16 percent in 1771, 33 percent in 1833, and 37 percent in 1848, while the lowest 80 percent of the population controlled 39 percent of the wealth in 1689, 29 percent in 1771, 14 percent in 1833, and a mere 4 percent in 1848.
  • In New York, the top 1 percent of the population controlled 40 percent of the wealth in 1828 and 50 percent in 1845; the top 4 percent of the population controlled 63 percent of the wealth in 1828 and 80 percent in 1845.49
  • While two and a half million Europeans had migrated to all of the Americas between 1500 and 1800, the same number—two and a half million—arrived specifically in the United States between 1845 and 1854 alone. As a proportion of the U.S. population, European immigrants grew from 1.6 percent in the 1820s to 11.2 percent in 1860. Writing in 1837, one Michigan reformer called the nation’s rate of immigration “the boldest experiment upon the stability of government ever made in the annals of time.”51 The largest
  • Critics of Jackson—himself the son of Irish immigrants—had blamed his election on the rising population of poor, newly enfranchised Irishmen. “Everything in the shape of an Irishman was drummed to the polls,” one newspaper editor wrote in 1828.52 By 1860, more than one in eight Americans were born in Europe, including 1.6 million Irish and 1.2 million Germans, the majority of whom were Catholic. As the flood of immigrants swelled, the force of nativism gained strength, as did hostility toward Catholics, fueled by the animus of evangelical Protestants.
  • The insularity of both Irish and German communities contributed to a growing movement to establish tax-supported public elementary schools, known as “common schools,” meant to provide a common academic and civic education to all classes of Americans. Like the extension of suffrage to all white men, this element of the American experiment propelled the United States ahead of European nations. Much of the movement’s strength came from the fervor of revivalists. They hoped that these new schools would assimilate a diverse population of native-born and foreign-born citizens by introducing them to the traditions of American culture and government, so that boys, once men, would vote wisely, and girls, once women, would raise virtuous children. “It is our duty to make men moral,” read one popular teachers’ manual, published in 1830. Other advocates hoped that a shared education would diminish partisanship. Whatever the motives of its advocates, the common school movement emerged out of, and nurtured, a strong civic culture.56
  • With free schools, literacy spread, and the number of newspapers rose, a change that was tied to the rise of a new party system. Parties come and go, but a party system—a stable pair of parties—has characterized American politics since the ratification debates. In American history the change from one party system to another has nearly always been associated with a revolution in communications that allows the people to shake loose of the control of parties. In the 1790s, during the rise of the first party system, which pitted Federalists against Republicans, the number of newspapers had swelled. During the shift to the second party system, which, beginning in 1833, pitted Democrats against the newly founded Whig Party, not only did the number of newspapers rise, but their prices plummeted.
  • The newspapers of the first party system, which were also known as “commercial advertisers,” had consisted chiefly of partisan commentary and ads, and generally sold for six cents an issue. The new papers cost only one cent, and were far more widely read. The rise of the so-called penny press also marked the beginning of the triumph of “facts” over “opinion” in American journalism, mainly because the penny press aimed at a different, broader, and less exclusively partisan, audience. The New York Sun appeared in 1833. “It shines for all” was its common-man motto. “The object of this paper is to lay before the public, at a price within the means of everyone, ALL THE NEWS OF THE DAY,” it boasted. It dispensed with subscriptions and instead was circulated at newsstands, where it was sold for cash, to anyone who had a ready penny. Its front page was filled not with advertising but with news. The penny press was a “free press,” as James Gordon Bennett of the New York Herald put it, because it wasn’t beholden to parties. (Bennett, born in Scotland, had immigrated to the United States after reading Benjamin Franklin’s Autobiography.) Since the paper was sold at newsstands, rather than mailed to subscribers, he explained, its editors and writers were “entirely ignorant who are its readers and who are not.” They couldn’t favor their readers’ politics because they didn’t know them. “We shall support no party,” Bennett insisted. “We shall endeavor to record facts.”
  • During the days of the penny press, Tocqueville observed that Americans had a decided preference for weighing the facts of a matter themselves: They mistrust systems; they adhere closely to facts and study facts with their own senses. As they do not easily defer to the mere name of any fellow man, they are never inclined to rest upon any man’s authority; but, on the contrary, they are unremitting in their efforts to find out the weaker points of their neighbor’s doctrine.60
  • For centuries, Europeans had based their claims to lands in the New World on arguments that native peoples had no right to the land they inhabited, no sovereignty over it, because they had no religion, or because they had no government, or because they had no system of writing. The Cherokees, with deliberation and purpose, challenged each of these arguments.
  • Britain, Calhoun argued that if a state were to decide that a law passed by Congress was unconstitutional, the Constitution would have to be amended, and if such an amendment were not ratified—if it didn’t earn the necessary approval of three-quarters of the states—the objecting state would have the right to secede from the Union. The states had been sovereign before the Constitution was ever written, or even thought of, Calhoun argued, and they remained sovereign. Calhoun also therefore argued against majority rule; nullification is fundamentally anti-majoritarian. If states can secede, the majority does not rule.78 The nullification crisis was
  • New York abolished debtors’ prison in 1831, and in 1841, Congress passed a federal law offering bankruptcy protection to everyone. Within two years, 41,000 Americans had filed for bankruptcy. Two years later, the law was repealed, but state laws continued to offer bankruptcy protection and, still more significantly, debtors’ prisons were gone for good. In Britain and all of Europe except Portugal, offenders were still being thrown in debtors’ prison (a plot that animated many a nineteenth-century novel); in the United States, debtors could declare bankruptcy and begin again.
  • A nation of debtors, Americans came to see that most people who fall into debt are victims of the business cycle and not of fate or divine retribution or the wheel of fortune. The nation’s bankruptcy laws, even as they came and went again, made taking risks less risky for everyone, which meant that everyone took more risks.
  • the geographical vastness of the United States meant that the anxiety about the machinery of industrial capitalism took the form not of Marxism, with its argument that “the history of all hitherto existing society is the history of class struggles,” but instead of a romance with nature, and with the land, and with all things rustic. Against the factory, Americans posed not a socialist utopia but the log cabin.
  • Were all these vast designs and rapid strides worth it? Thoreau thought not. He came to this truth: “They are but improved means to an unimproved end.”112
  • Expansion, even more than abolition, pressed upon the public the question of the constitutionality of slavery. How or even whether this crisis would be resolved was difficult to see not only because of the nature of the dispute but also because there existed very little agreement about who might resolve it: Who was to decide whether a federal law was unconstitutional?
  • In the midst of all this clamoring among the thundering white-haired patriarchs of American politics, there emerged the idea that the authority to interpret the Constitution rests with the people themselves. Or, at least, this became a rather fashionable thing to say. “It is, Sir, the people’s Constitution, the people’s government, made for the people, made by the people, and answerable to the people,” Daniel Webster roared from the floor of Congress.14 Every man could read and understand the Constitution, Webster insisted.
  • The Notes, it appeared, could be read as variously as the Constitution itself. As one shrewd observer remarked, “The Constitution threatens to be a subject of infinite sects, like the Bible.” And, as with many sects, those politicians who most strenuously staked their arguments on the Constitution often appeared the least acquainted with it. Remarked New York governor Silas Wright, “No one familiar with the affairs of our government, can have failed to notice how large a proportion of our statesmen appear never to have read the Constitution of the United States with a careful reference to its precise language and exact provisions, but rather, as occasion presents, seem to exercise their ingenuity . . . to stretch both to the line of what they, at the moment, consider expedient.”22
  • A NATION HAS borders but the edges of an empire are frayed.23 While abolitionists damned the annexation of Texas as an extension of the slave power, more critics called it an act of imperialism, inconsistent with a republican form of government. “We have a republic, gentlemen, of vast extent and unequalled natural advantages,” Daniel Webster pointed out. “Instead of aiming to enlarge its boundaries, let us seek, rather, to strengthen its union.”24 Webster lost that argument, and, in the end, it was the American reach for empire that, by sundering the Union, brought about the collapse of slavery.
  • Although hardly ever reported in the press, the years between 1830 and 1860 saw more than one hundred incidents of violence between congressmen, from melees in the aisles to mass brawls on the floor, from fistfights and duels to street fights. “It is the game of these men, and of their profligate organs,” Dickens wrote, “to make the strife of politics so fierce and brutal, and so destructive of all self-respect in worthy men, that sensitive and delicate-minded persons shall be kept aloof, and they, and such as they, be left to battle out their selfish views unchecked.”
  • They spat venom. They pulled guns. They unsheathed knives. Divisions of party were abandoned; the splinter in Congress was sectional. Before heading to the Capitol every morning, southern congressmen strapped bowie knives to their belts and tucked pistols into their pockets. Northerners, on principle, came unarmed. When northerners talked about the slave power, they meant that literally.32
  • If the United States were to acquire territory from Mexico, and if this territory were to enter the Union, would Mexicans become American citizens? Calhoun, now in the Senate, vehemently opposed this idea. “I protest against the incorporation of such a people,” he declared. “Ours is the government of the white man.”
  • And yet, as different as were Wilmot’s interests from Calhoun’s, they were both interested in the rights of white men, as Wilmot made plain. “I plead the cause of the rights of white freemen,” he said. “I would preserve for free white labor a fair country, a rich inheritance, where the sons of toil, of my own race and own color, can live without the disgrace which association with negro slavery brings upon free labor.”
  • If the problem was the size of the Republic, the sprawl of its borders, the frayed edges of empire, couldn’t railroads, and especially the telegraph, tie the Republic together? “Doubt has been entertained by many patriotic minds how far the rapid, full, and thorough intercommunication of thought and intelligence, so necessary to the people living under a common representative republic, could be expected to take place throughout such immense bounds,” said one House member in 1845, but “that doubt can no longer exist.”45
  • even Americans with an unflinching faith in machine-driven progress understood that a pulse along a wire could not stop the slow but steady dissolution of the Union.
  • the Treaty of Guadalupe Hidalgo, under which the top half of Mexico became the bottom third of the United States. The gain to the United States was as great as the loss to Mexico. In 1820, the United States of America had spanned 1.8 million square miles, with a population of 9.6 million people; Mexico had spanned 1.7 million square miles, with a population of 6.5 million people. By 1850, the United States had acquired one million square miles of Mexico, and its population had grown to 23.2 million; Mexico’s population was 7.5 million.49
  • The Louisiana Purchase had doubled the size of the United States. In gaining territory from Mexico, the United States grew by 64 percent.
  • the territory comprising the United States had grown to “nearly ten times as large as the whole of France and Great Britain combined; three times as large as the whole of France, Britain, Austria, Prussia, Spain, Portugal, Belgium, Holland, and Denmark, together; one-and-a-half times as large as the Russian empire in Europe; one-sixth less only than the area covered by the fifty-nine or sixty empires, states, and Republics of Europe; of equal extent with the Roman Empire or that of Alexander, neither of which is said to have exceeded 3,000,000 square miles.”50
  • Sentiment was not Fuller’s way; debate was her way. She was a scourge of lesser intellects. Edgar Allan Poe, whose work she did not admire, described her as wearing a perpetual sneer. In “The Great Lawsuit: Man versus Men, Woman versus Women,” Fuller argued that the democratization of American politics had cast light on the tyranny of men over women: “As men become aware that all men have not had their fair chance,” she observed, women had become willing to say “that no women have had a fair chance.”
  • In 1845, in Woman in the Nineteenth Century, Fuller argued for fundamental and complete equality: “We would have every path laid open to Woman as freely as to Man.”56 The book was wildly successful, and Greeley, who had taken to greeting Fuller with one of her catchphrases about women’s capacity—“Let them be sea-captains, if you will”—sent her to Europe to become his newspaper’s foreign correspondent.
  • Reeling from those revolutions, the king of Bavaria asked the historian Leopold von Ranke to explain why his people had rebelled against monarchial rule, as had so many peoples in Europe that year. “Ideas spread most rapidly when they have found adequate concrete expression,” Ranke told the king, and the United States had “introduced a new force in the world,” the idea that “the nation should govern itself,” an idea that would determine “the course of the modern world”: free speech, spread by wire, would make the whole world free.61
  • Unlike Thoreau, who cursed the railroads, Free-Soilers believed in improvement, improvement through the hard work of the laboring man, his power, his energy. “Our paupers to-day, thanks to free labor, are our yeoman and merchants of tomorrow,” the New York Times boasted. “Why, who are the laboring people of the North?” Daniel Webster asked. “They are the whole North. They are the people who till their own farms with their own hands, freeholders, educated men, independent men.”
  • This attack by northerners led southerners to greater exertions in defending their way of life. They battled on several fronts. They described northern “wage slavery” as a far more exploitative system of labor than slavery. They celebrated slavery as fundamental to American prosperity. Slavery “has grown with our growth, and strengthened with our strength,” Calhoun said. And they elaborated an increasingly virulent ideology of racial difference, arguing against the very idea of equality embodied in the American creed.
  • Conservative Virginian George Fitzhugh, himself inspired by ethnological thinking, dismissed the “self-evident truths” of the Declaration of Independence as utter nonsense. “Men are not born physically, morally, or intellectually equal,” he wrote. “It would be far nearer the truth to say, ‘that some were born with saddles on their backs, and others booted and spurred to ride them,’—and the riding does them good.”
  • For Fitzhugh, the error had begun in the imaginations of the philosophes of the Enlightenment and in their denial of the reality of history. Life and liberty are not “inalienable rights,” Fitzhugh argued: instead, people “have been sold in all countries, and in all ages, and must be sold so long as human nature lasts.” Equality means calamity: “Subordination, difference of caste and classes, difference of sex, age, and slavery beget peace and good will.”
  • Progress is an illusion: “the world has not improved in the last two thousand, probably four thousand years.” Perfection is to be found in the past, not in the future.66 As for the economic systems of the North and the South, “Free laborers have not a thousandth part of the rights and liberties of negro slaves,” Fitzhugh insisted. “The negro slaves of the South are the happiest, and, in some sense, the freest people in the world.”67
  • HISTORY TEEMS WITH mishaps and might-have-beens: explosions on the Potomac, storms not far from port, narrowly contested elections, court cases lost and won, political visionaries drowned. But over the United States in the 1850s, a sense of inevitability fell, as if there were a fate, a dismal dismantlement, that no series of events or accidents could thwart.
  • over the United States in the 1850s, a sense of inevitability fell, as if there were a fate, a dismal dismantlement, that no series of events or accidents could thwart.
  • Douglas promoted the idea of popular sovereignty, proclaiming, “If there is any one principle dearer and more sacred than all others in free governments, it is that which asserts the exclusive right of a free people to form and adopt their own fundamental law.”75 Unfree people, within Stephen Douglas’s understanding, had no such rights.
  • the Fugitive Slave Law, required citizens to turn in runaway slaves and denied fugitives the right to a jury trial. The law, said Harriet Jacobs, a fugitive slave living in New York, marked “the beginning of a reign of terror to the colored population.”76 Bounty hunters and slave catchers hunted down and captured former slaves and returned them to their owners for a fee. Little stopped them from seizing men, women, and children who had been born free, or who had been legally emancipated, and selling them to the South, too. Nothing so brutally exposed the fragility of freedom or the rapaciousness of slavery.
  • February 1854, at their convention in Philadelphia, northern Know-Nothings proposed a platform plank calling for the reinstatement of the Missouri Compromise. When that motion was rejected, some fifty delegates from eight northern states bolted: they left the convention, and the party, to set up their own party, the short-lived North American Party. Nativism would endure as a force in American politics, but, meanwhile, nativists split over slavery.
  • Lincoln’s was the language of free soil, free speech, and free labor. He grounded his argument against slavery in his understanding of American history, in the language of Frederick Douglass, and in his reading of the Constitution. “Let no one be deceived,” he said. “The spirit of seventy-six and the spirit of Nebraska, are utter antagonisms.”
  • As a nation, we began by declaring that “all men are created equal.” We now practically read it “all men are created equal, except negroes.” When the Know-Nothings get control, it will read “all men are created equal, except negroes, and foreigners, and Catholics.” When it comes to this I should prefer emigrating to some country where they make no pretense of loving liberty—to Russia, for instance, where despotism can be taken pure, and without the base alloy of hypocrisy.
  • “That negroes, whether slave or free, that is, men of the African race, are not citizens of the United States by the Constitution.” The implications of the ruling stunned his readers. Even Americans who held no strong views on the question of slavery—and they were rare enough—were nonetheless shocked by the court’s exercise of the authority to determine the unconstitutionality of the law.
  • “A large meeting of colored people” was held in Philadelphia in April, at which it was resolved that “the only duty the colored man owes to a Constitution under which he is declared to be an inferior and degraded being, having no rights which white men are bound to respect, is to denounce and repudiate it, and to do what he can by all proper means to bring it into contempt.”
  • “You may close your Supreme Court against the black man’s cry for justice, but you cannot, thank God, close against him the ear of a sympathising world, nor shut up the Court of Heaven.” Taney’s interpretation of the Constitution would be ignored, Douglass predicted. “Slavery lives in this country not because of any paper Constitution, but in the moral blindness of the American people.”102
  • APHOTOGRAPH STOPS TIME, TRAPPING IT LIKE A BUTTERFLY in a jar.
  • No other kind of historical evidence has this quality of instantaneity, of an impression taken in a moment, in a flicker, an eye opened and then shut. Photographs also capture the ordinary, the humble, the speechless. The camera discriminates between light and dark but not between the rich and the poor, the literate and the illiterate, the noisy and the quiet.
  • portraits were also closely associated with death, with being trapped in time, on glass, for eternity, and, even more poignantly, with equality.3 With photography, Walt Whitman predicted, “Art will be democratized.”
  • Morse had long predicted that the telegraph would usher in an age of world peace. “I trust that one of its effects will be to bind man to his fellow-man in such bonds of amity as to put an end to war,” he insisted.8 War was a failure of technology, Morse argued, a shortcoming of communication that could be remedied by way of a machine. Endowing his work with the grandest of purposes, he believed that the laying of telegraph wires across the American continent would bind the nation together into one people, and that the laying of cable across the ocean would bind Europe to the Americas, ushering in the dawn of an age of global harmony.
  • But war isn’t a failure of technology; it’s a failure of politics.
  • Debate is to war what trial by jury is to trial by combat: a way to settle a dispute without coming to blows. The form and its rules had been established over centuries. They derived from rules used in the courts and in Parliament, and even from the rules of rhetoric used in the writing of poetry. Since the Middle Ages and the founding of the first universities, debate had been the foundation of a liberal arts education.
  • (Etymologically and historically, the artes liberales are the arts acquired by people who are free, or liber.)10 In the eighteenth century, debate was understood as the foundation of civil society. In 1787, delegates to the constitutional convention had agreed to “to argue without asperity, and to endeavor to convince the judgment without hurting the feelings of each other.”
  • Some twelve thousand people showed up for their first debate, at two o’clock in the afternoon on August 21, in Ottawa, Illinois. There were no seats; the audience stood, without relief, for three hours.
  • They’d agreed to strict rules: the first speaker would speak for an hour and the second for an hour and a half, whereupon the first speaker would offer a thirty-minute rebuttal.
  • And, as to the wrongness of slavery, he called it tyranny, and the idea of its naturalness as much an error as a belief in the divine right of kings. The question wasn’t sectionalism or nationalism, the Democratic Party or the Republican Party. The question was right against wrong. “That is the issue that will continue in this country when these poor tongues of Judge Douglas and myself shall be silent,” Lincoln said.16
  • The price of slaves grew so high that a sizable number of white southerners urged the reopening of the African slave trade. In the 1850s, legislatures in several states, including South Carolina, proposed reopening the trade. Adopting this measure would have violated federal law. Some “reopeners” believed that the federal ban on the trade was unconstitutional; others were keen to nullify it, in a dress rehearsal for secession.
  • “If it is right to buy slaves in Virginia and carry them to New Orleans, why is it not right to buy them in Cuba, Brazil, or Africa and carry them there?”21 Proslavery southerners made these arguments under the banner of “free trade,” their rhetorical answer to “free labor.”
  • To George Fitzhugh, all societies were “at all times and places, regulated by laws as universal and as similar as those which control the affairs of bees,” and trade itself, including the slave trade, was “as old, as natural, and irresistible as the tides of the ocean.”
  • In 1855, David Christy, the author of Cotton Is King, wrote about the vital importance of “the doctrine of Free Trade,” which included abolishing the tariffs that made imported English goods more expensive than manufactured goods produced in the North. As one southerner put it, “Free trade, unshackled industry, is the motto of the South.”23
  • Darwin’s Origin of Species would have a vast and lingering influence on the world of ideas. Most immediately, it refuted the racial arguments of ethnologists like Louis Agassiz. And, in the months immediately following the book’s publication—the last, unsettling months before the beginning of the Civil War—abolitionists took it as evidence of the common humanity of man.30
  • The truths of the Confederacy disavowed the truths of the Union. The Confederacy’s newly elected vice president, a frail Georgian named Alexander Stephens, delivered a speech in Savannah in which he made those differences starkly clear. The ideas that lie behind the Constitution “rested upon the assumption of the equality of races,” Stephens said, but
  • “Our new government is founded upon exactly the opposite idea: its foundations are laid, its cornerstone rests, upon the great truth that the negro is not equal to the white man; that slavery . . . is his natural and moral condition. This, our new government, is the first, in the history of the world, based upon this great physical, philosophical, and moral truth.”52 It would become politically expedient, after the war, for ex-Confederates to insist that the Confederacy was founded on states’ rights. But the Confederacy was founded on white supremacy.
  • Opposition to free speech had long been the position of slave owners, a position taken at the constitutional convention and extended through the gag rule, antiliteracy laws, bans on the mails, and the suppression of speakers. An aversion to political debate also structured the Confederacy, which had both a distinctive character and a lasting influence on Americans’ ideas about federal authority as against popular sovereignty.
  • Secessionists were attempting to build a modern, proslavery, antidemocratic state. In order to wage a war, the leaders of this fundamentally antidemocratic state needed popular support. Such support was difficult to gain and impossible to maintain. The Confederacy therefore suppressed dissent.55
  • By May of 1861, the Confederacy comprised fifteen states stretching over 900,000 square miles and containing 12 million people, including 4 million slaves, and 4 million white women who were disenfranchised. It rested on the foundational belief that a minority governs a majority. “The condition of slavery is with us nothing but a form of civil government for a class of people not fit to govern themselves,” said Jefferson Davis.
  • There would be those, after the war ended, who said that it had been fought over states’ rights or to preserve the Union or for a thousand other reasons and causes. Soldiers, North and South, knew better. “The fact that slavery is the sole undeniable cause of this infamous rebellion, that it is a war of, by, and for Slavery, is as plain as the noon-day sun,” a soldier writing for his Wisconsin regimental newspaper explained in 1862. “Any man who pretends to believe that this is not a war for the emancipation of the blacks,” a soldier writing for his Confederate brigade’s newspaper wrote that same year, “is either a fool or a liar.”
  • Lincoln would remain a man trapped in time, in the click of a shutter and by the trigger of a gun. In mourning him, in sepia and yellow, in black and white, beneath plates of glinting glass, Americans deferred a different grief, a vaster and more dire reckoning with centuries of suffering and loss, not captured by any camera, not settled by any amendment, the injuries wrought on the bodies of millions of men, women, and children, stolen, shackled, hunted, whipped, branded, raped, starved, and buried in unmarked graves.
  • No president consecrated their cemeteries or delivered their Gettysburg address; no committee of arrangements built monuments to their memory. With Lincoln’s death, it was as if millions of people had been crammed into his tomb, trapped in a vault that could not hold them.
  • People running for Congress didn’t have to meet property requirements; they didn’t have to have been born in the United States; and they couldn’t be subjected to religious tests. This same logic applied to citizenship, and for the same reason: the framers of the Constitution understood these sorts of requirements as forms of political oppression. The door to the United States was meant to be open.
  • Before the 1880s, no federal law restricted immigration. And, despite periods of fervent nativism, especially in the 1840s, the United States welcomed immigrants into citizenship, and valued them. After the Civil War, the U.S. Treasury estimated the worth of each immigrant as equal to an $800 contribution to the nation’s economy,
  • Nineteenth-century politicians and political theorists interpreted American citizenship within the context of an emerging set of ideas about human rights and the authority of the state, holding dear the conviction that a good government guarantees everyone eligible for citizenship the same set of political rights, equal and irrevocable.
  • The Civil War raised fundamental questions not only about the relationship between the states and the federal government but also about citizenship itself and about the very notion of a nation-state. What is a citizen? What powers can a state exert over its citizens? Is suffrage a right of citizenship, or a special right, available only to certain citizens? Are women citizens? And if women are citizens, why aren’t they voters? What about Chinese immigrants, pouring into the West? They were free. Were they, under American law, “free white persons” or “free persons of color” or some other sort of persons?
  • In 1866, Congress searched in vain for a well-documented definition of the word “citizen.” Over the next thirty years, that definition would become clear, and it would narrow.
  • In 1896, the U.S. passport office, in the Department of State, which had grown to thousands of clerks, began processing applications according to new “Rules Governing the Application of Passports,” which required evidence of identity, including a close physical description Lew Wa Ho worked at a dry goods shop in St. Louis; the photograph was included in his Immigration Service case file as evidence of employment. Age, _____ years; stature, _____ feet _____ inches (English measure); forehead, _____; eyes, _____; nose, _____; mouth, _____; chin, _____; hair, _____; complexion, _____; face, _____ as well as affidavits, signatures, witnesses, an oath of loyalty, and, by way of an application fee, one dollar.12
  • The Fourteenth Amendment, drafted by the Joint Committee on Reconstruction, marked the signal constitutional achievement of a century of debate and war, of suffering and struggle. It proposed a definition of citizenship guaranteeing its privileges and immunities, and insuring equal protection and due process to all citizens. “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside,”
  • “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”20
  • During the drafting of the amendment, the committee betrayed the national phalanx of women who for decades had fought for abolition and for black civil rights by proposing to insert, into the amendment’s second section, a provision that any state that denied the right to vote “to any of the male inhabitants of such state” would lose representation in Congress. “Male” had never before appeared in any part of the Constitution. “If that word ‘male’ be inserted,” Stanton warned, “it will take us a century at least to get it out.”21 She was not far wrong.
  • Women protested. “Can any one tell us why the great advocates of Human Equality . . . forget that when they were a weak party and needed all the womanly strength of the nation to help them on, they always united the words ‘without regard to sex, race, or color’?” asked Ohio-born reformer Frances Gage. Charles Sumner offered this answer: “We know how the Negro will vote, but are not so sure of the women.” How women would vote was impossible to know. Would black women vote the way black men voted? Would white women vote like black women? Republicans decided they’d rather not find out.
  • In the federal census of 1860, 24,282 out of 34,935 Chinese toiled in mines. Although some Chinese immigrants left mining—and some were forced out—many continued to mine well into the 1880s, often working in sites abandoned by other miners.
  • An 1867 government report noted that in Montana, “the diggings now fall into the hands of the Chinese, who patiently glean the fields abandoned by the whites.” Chinese workers began settling in Boise in 1865 and only five years later constituted a third of Idaho’s settlers and nearly 60 percent of its miners. In 1870, Chinese immigrants and their children made up nearly 9 percent of the population of California, and one-quarter of the state’s wage earners.
  • Their rights, under state constitutions and statutes, were markedly limited. Oregon’s 1857 constitution barred “Chinamen” from owning real estate, while California barred Chinese immigrants from testifying in court, a provision upheld in an 1854 state supreme court opinion, People v. Hall, which described the Chinese as “a race of people whom nature has marked as inferior, and who are incapable of progress or intellectual development beyond a certain point, as their history has shown.”29
  • And what about the voting rights of U.S.-born Chinese Americans? Much turned on the Fifteenth Amendment, proposed early in 1869. While the aim of the amendment was to guarantee African Americans the right to vote and hold office, its language inevitably raised the question of Chinese citizenship and suffrage. Opponents of the amendment found its entire premise scandalous. Garrett Davis, a Democratic senator from Kentucky, fumed, “I want no negro government; I want no Mongolian government; I want the government of the white man which our fathers incorporated.”33
  • Douglass spoke about what he called a “composite nation,” a strikingly original and generative idea, about a citizenry made better, and stronger, not in spite of its many elements, but because of them: “I want a home here not only for the negro, the mulatto and the Latin races; but I want the Asiatic to find a home here in the United States, and feel at home here, both for his sake and for ours.”36
  • Tilden won the nomination anyway and, in the general election, he won the popular vote against Hayes. Unwilling to accept the result of the election, Republicans disputed the returns in Florida, Louisiana, and South Carolina.
  • Eventually, the decision was thrown to an electoral commission that brokered a nefarious compromise: Democrats agreed to throw their support behind the man ever after known as Rutherfraud B. Hayes, so that he could become president, in exchange for a promise from Republicans to end the military occupation of the South. For a minor and petty political win over the Democratic Party, Republicans first committed electoral fraud and then, in brokering a compromise, abandoned a century-long fight for civil rights.
  • As soon as federal troops withdrew, white Democrats, calling themselves the “Redeemers,” took control of state governments of the South, and the era of black men’s enfranchisement came to a violent and terrible end. The Klan terrorized the countryside, burning homes and hunting, torturing, and killing people. (Between 1882 and 1930, murderers lynched more than three thousand black men and women.)
  • Black politicians elected to office were thrown out. And all-white legislatures began passing a new set of black codes, known as Jim Crow laws, that segregated blacks from whites in every conceivable public place, down to the last street corner. Tennessee passed the first Jim Crow law, in 1881, mandating the separation of blacks and whites in railroad cars. Georgia became the first state to demand separate seating for whites and blacks in streetcars, in 1891.
  • “Capital buys and sells to-day the very heart-beats of humanity,” she said. Democracy itself had been corrupted by it: “the speculators, the land-robbers, the pirates and gamblers of this Nation have knocked unceasingly at the doors of Congress, and Congress has in every case acceded to their demands.”44 The capitalists, she said, had subverted the will of the people.
  • In the late nineteenth century, a curious reversal took place. Electoral politics, the politics men engaged in, became domesticated, the office work of education and advertising—even voting moved indoors. Meanwhile, women’s political expression moved to the streets. And there, at marches, rallies, and parades, women deployed the tools of the nineteenth-century religious revival: the sermon, the appeal, the conversion.45
  • 1862 alone, in addition to the Homestead Act, the Republican Congress passed the Pacific Railway Act (chartering railroad companies to build the line from Omaha, Nebraska, to Sacramento, California) and the National Bank Act (to issue paper money to pay for it all). After the war, political power moved from the states to the federal government and as the political influence of the South waned, the importance of the West rose. Congress not only sent to the states amendments to the Constitution that defined citizenship and guaranteed voting rights but also passed landmark legislation involving the management of western land, the control of native populations, the growth and development of large corporations, and the construction of a national transportation infrastructure.
  • The independent farmer—the lingering ideal of the Jeffersonian yeoman—remained the watchword of the West, but in truth, the family farming for subsistence, free of government interference, was far less common than a federally subsidized, capitalist model of farming and cattle raising for a national or even an international market. The small family farm—Jefferson’s republican dream—was in many parts of the arid West an environmental impossibility.
  • Much of the property distributed under the terms of the Homestead Act, primarily in the Great Basin, was semi-arid, the kind of land on which few farmers could manage a productive farm with only 160 acres. Instead, Congress typically granted the best land to railroads, and allowed other, bigger interests to step in, buying up large swaths for agricultural business or stock raising and fencing it in, especially after the patenting of barbed wire in 1874.46
  • In 1885, an American economist tried to reckon the extraordinary transformation wrought by what was now 200,000 miles of railroad, more than in all of Europe. It was possible to move one ton of freight one mile for less than seven-tenths of one cent, “a sum so small,” he wrote, “that outside of China it would be difficult to find a coin of equivalent value to give a boy as a reward for carrying an ounce package across a street.”48
  • instability contributed to a broader set of political concerns that became Mary Lease’s obsession, concerns known as “the money question,” and traceable all the way back to Hamilton’s economic plan: Should the federal government control banking and industry?
  • No group of native-born Americans was more determined to end Chinese immigration than factory workers. The 1876 platform of the Workingmen’s Party of California declared that “to an American death is preferable to life on par with a Chinaman.”55 In 1882, spurred by the nativism of populists, Congress passed its first-ever immigration law, the Chinese Exclusion Act, which barred immigrants from China from entering the United States and, determining that the Fourteenth Amendment did not apply to people of Chinese ancestry, decreed that Chinese people already in the United States were permanent aliens who could never become citizens.
  • Populists, whether farmers or factory workers, for all their invocation of “the people,” tended to take a narrow view of citizenship. United in their opposition to the “money power,” members of the alliance, like members of the Knights of Labor, were also nearly united in their opposition to the political claims of Chinese immigrants, and of black people. The Farmers’ Alliance excluded African Americans, who formed their own association, the Colored Farmers’ Alliance. Nor did populists count Native Americans within the body of “the people.”
  • In 1887, Congress passed the Dawes Severalty Act, under whose terms the U.S. government offered native peoples a path to citizenship in a nation whose reach had extended across the lands of their ancestors. The Dawes Act granted to the federal government the authority to divide Indian lands into allotments and guaranteed U.S. citizenship to Indians who agreed to live on those allotments and renounce tribal membership.
  • In proposing the allotment plan, Massachusetts senator Henry Laurens Dawes argued that the time had come for Indians to choose between “extermination or civilization” and insisted that the law offered Americans the opportunity to “wipe out the disgrace of our past treatment” and instead lift Indians up “into citizenship and manhood.”58
  • But in truth the Dawes Act understood native peoples neither as citizens nor as “persons of color,” and led to nothing so much as forced assimilation and the continued takeover of native lands. In 1887 Indians held 138 million acres; by 1900, they held only half of that territory.
  • In 1877, railroad workers protesting wage cuts went on strike in cities across the country. President Hayes sent in federal troops to end the strikes, marking the first use of the power of the federal government to support business against labor. The strikes continued, with little success in improving working conditions. Between 1881 and 1894, there was, on average, one major railroad strike a week. Labor was, generally and literally, crushed: in a single year, of some 700,000 men working on the railroads, more than 20,000 were injured on the job and nearly 2,000 killed.59
  • In 1882, Roscoe Conkling represented the Southern Pacific Railroad Company’s challenge to a California tax rule. He told the U.S. Supreme Court, “I come now to say that the Southern Pacific Railroad Company and its creditors and stockholders are among the ‘persons’ protected by the Fourteenth Amendment.”
  • In offering an argument about the meaning and original intention of the word “person” in the Fourteenth Amendment, Conkling enjoyed a singular authority: he’d served on the Joint Committee on Reconstruction that had drafted the amendment and by 1882 was the lone member of that committee still living. With no one alive to contradict him, Conkling assured the court that the committee had specifically rejected the word “citizen” in favor of “person” in order to include corporations. (A
  • Much evidence suggests, however, that Conkling was lying. The record of the deliberations of the Joint Committee on Reconstruction does not support his argument regarding the committee’s original intentions, nor is it plausible that between 1866 and 1882, the framers of the Fourteenth Amendment had kept mysteriously hidden their secret intention to guarantee equal protection and due process to corporations. But
  • in 1886, when another railroad case, Santa Clara County v. Southern Pacific Railroad, reached the Supreme Court, the court’s official recorder implied that the court had accepted the doctrine that “corporations are persons within the meaning of the Fourteenth Amendment.”62 After that, the Fourteenth Amendment, written and ratified to guarantee freed slaves equal protection and due process of law, became the chief means by which corporations freed themselves from government regulation.
  • In 1937, Supreme Court Justice Hugo Black would observe, with grim dismay, that, over the course of fifty years, “only one half of one percent of the Fourteenth Amendment cases that came before the court had anything to do with African Americans or former slaves, while over half of the cases were about protecting the rights of corporations.”63 Rights guaranteed to the people were proffered, instead, to corporations.
  • He devised an economic plan that involved abolishing taxes on labor and instead imposing a single tax on land. Tocqueville had argued that democracy in America is made possible by economic equality; people with equal estates will eventually fight for, and win, equal political rights. George agreed. But, like Mary Lease, he thought that financial capitalism was destroying democracy by making economic equality impossible. He saw himself as defending “the Republicanism of Jefferson and the Democracy of Jackson.”72
  • Between 1889 and 1893, the mortgages on so many farms were foreclosed that 90 percent of farmland fell into the hands of bankers. The richest 1 percent of Americans owned 51 percent of the nation’s wealth, and the poorest 44 percent owned less than 2 percent.
  • For all its passionate embrace of political equality and human rights and its energetic championing of suffrage, the People’s Party rested on a deep and abiding commitment to exclude from full citizenship anyone from or descended from anyone from Africa or Asia.
  • Many of the reforms proposed by populists had the effect of diminishing the political power of blacks and immigrants. Chief among them was the Australian ballot, more usually known as the secret ballot, which, by serving as a de facto literacy test, disenfranchised both black men in the rural South and new immigrants in northern cities.
  • to deliberate at length over the secret ballot. Quickest to adopt the reform were the states of the former Confederacy, where the reform appealed to legislatures eager to find legal ways to keep black men from voting. In 1890, Mississippi held a constitutional
  • Both by law and by brute force, southern legislators, state by state, and poll workers, precinct by precinct, denied black men the right to vote. In Louisiana, black voter registration dropped from 130,000 in 1898 to 5,300 in 1908, and to 730 in 1910. In 1893, Arkansas Democrats celebrated their electoral advantage by singing,         The Australian ballot works like a charm         It makes them think and scratch         And when a Negro gets a ballot         He has certainly met his match.82
  • One Republican said, “I felt that Bryan was the first politician I had ever heard speak the truth and nothing but the truth,” even though in every case, when he read a transcript of the speech in the newspaper the next day, he “disagreed with almost all of it.”85
  • In 1894, Bryan tacked an income tax amendment to a tariff bill, which managed to pass. But the populist victory—a 2 percent federal income tax that applied only to Americans who earned more than $4,000—didn’t last long. The next year, in Pollock v. Farmers’ Loan and Trust Company, the Supreme Court ruled 5–4 that the tax was a direct tax, and therefore unconstitutional, one justice calling the tax the first campaign in “a war of the poor against the rich.”
  • POPULISM ENTERED AMERICAN politics at the end of the nineteenth century, and it never left. It pitted “the people,” meaning everyone but the rich, against corporations, which fought back in the courts by defining themselves as “persons”; and it pitted “the people,” meaning white people, against nonwhite people who were fighting for citizenship and whose ability to fight back in the courts was far more limited, since those fights require well-paid lawyers.
  • After 1859, and the Origin of Species, the rise of Darwinism contributed to the secularization of the university, as did the influence of the German educational model, in which universities were divided into disciplines and departments, each with a claim to secular, and especially scientific, expertise. These social sciences—political science, economics, sociology, and anthropology—used the methods of science, and especially of quantification, to study history, government, the economy, society, and culture.96
  • For Wilson’s generation of political scientists, the study of the state replaced the study of the people. The erection of the state became, in their view, the greatest achievement of civilization. The state also provided a bulwark against populism. In the first decades of the twentieth century, populism would yield to progressivism as urban reformers applied the new social sciences to the study of political problems, to be remedied by the intervention of the state.
  • The rise of populism and the social sciences reshaped the press, too. In the 1790s, the weekly partisan newspaper produced the two-party system. The penny press of the 1830s produced the popular politics of Jacksonian democracy. And in the 1880s and 1890s the spirit of populism and the empiricism of the social sciences drove American newspapers to a newfound obsession with facts.
  • The newspapers of the 1880s and 1890s were full of stunts and scandals and crusades, even as they defended their accuracy. “Facts, facts piled up to the point of dry certitude was what the American people really wanted,” wrote the reporter Ray Stannard Baker. Julius Chambers said that writing for the New York Herald involved “Facts; facts; nothing but facts. So many peas at so much a peck; so much molasses at so much a quart.”
  • Ballot reform, far from keeping money out of elections, had ushered more money into elections, along with a new political style: using piles of money to sell a candidate’s personality, borrowing from the methods of business by using mass advertising and education, slogans and billboards. McKinley ran a new-style campaign; Bryan ran an old-style campaign. Bryan barnstormed all over the country: he gave some six hundred speeches to five million people in twenty-seven states and traveled nearly twenty thousand miles.
  • But McKinley’s campaign coffers were fuller: Republicans spent $7 million; Democrats, $300,000. John D. Rockefeller alone provided the GOP with a quarter of a million dollars. McKinley’s campaign manager, Cleveland businessman Mark Hanna, was nearly buried in donations from fellow businessmen. He used that money to print 120 million pieces of campaign literature. He hired fourteen hundred speakers to stump for McKinley; dubbing the populists Popocrats, they agitated voters to a state of panic.108 As Mary Lease liked to say, money elected McKinley.
  • Turner, born in Wisconsin in 1861, was one of the first Americans to receive a doctorate in history. At the exposition, he delivered his remarks before the American Historical Association, an organization that had been founded in 1884 and incorporated by an act of Congress in 1889 “for the promotion of historical studies, the collection and preservation of historical manuscripts and for kindred purposes in the interest of American history and of history in America.”110
  • like journalists, historians borrowed from the emerging social sciences, relying on quantitative analysis to understand how change happens. Where George Bancroft, in his History of the United States, had looked for explanations in the hand of providence, Frederick Jackson Turner looked to the census.
  • The difference between Turner’s methods and Bancroft’s signaled a profound shift in the organization of knowledge, one that would have lasting consequences for the relationship between the people and the state and for civil society itself. Like Darwinism, the rise of the social sciences involved the abdication of other ways of knowing, and, indirectly, contributed to the rise of fundamentalism.
  • Across newly defined academic disciplines, scholars abandoned the idea of mystery—the idea that there are things known only by God—in favor of the claim to objectivity, a development sometimes called “the disenchantment of the world.”111 When universities grew more secular, religious instruction became confined to divinity schools and theological seminaries.
  • theologian at the University of Chicago’s divinity school defined modernism as “the use of scientific, historical, and social methods in understanding and applying evangelical Christianity to the needs of living persons.”112 Increasingly, this is exactly what evangelicals who eventually identified themselves as fundamentalists found objectionable.
  • Influenced by both Jefferson and Darwin, Turner saw the American frontier as the site of political evolution, beginning with the “savages” of a “wilderness,” proceeding to the arrival of European traders, and continuing through various forms of settlement, through the establishment of cities and factories, “the evolution of each into a higher stage,” and culminating in the final stage of civilization: capitalism and democracy.114
  • “American democracy is fundamentally the outcome of the experiences of the American people in dealing with the West,” by which he meant the experience of European immigrants to the United States in defeating its native peoples, taking possession of their homelands, and erecting there a civilization of their own. This, for Turner, was the story of America and the lesson of American history: evolution.116
  • Douglass, who, as the former U.S. ambassador to Haiti, had represented the nation of Haiti at the Haitian pavilion, was the only eminent African American with a role at the fair, whose program had been planned by a board of 208 commissioners, all white.117 There were, however, black people at the fair: on display. In the Hall of Agriculture, old men and women, former slaves, sold miniature bales of cotton, souvenirs, while, in a series of exhibits intended to display the Turnerian progress of humankind from savagery to civilization, black Americans were posed in a fake African village. “As if to shame the Negro,” Douglass wrote, they “exhibit the Negro as a repulsive savage.”118
  • “A ship at anchor, with halliards broken, sails mildewed, hull empty, her bottom covered with sea-weed and barnacles, meets no resistance,” Douglass said that day, turning the idea of a ship of state to the problem of Jim Crow. “But when she spread her canvas to the breeze and sets out on her voyage, turns prow to the open sea, the higher shall be her speed, the greater shall be her resistance. And so it is with the colored man.”
  • He paused to allow his listeners to conjure the scene, and its meaning, of a people struggling against the sea. “My dear young friends,” Douglass closed. “Accept the inspiration of hope. Imitate the example of the brave mariner, who, amid clouds and darkness, amid hail, rain and storm bolts, battles his way against all that the sea opposes to his progress and you will reach the goal of your noble ambition in safety.”124
  • The majority in Plessy v. Ferguson asserted that separation and equality were wholly separate ideas. “We consider the underlying fallacy of the plaintiff’s argument to consist in the assumption that the enforced separation of the two races stamps the colored race with a badge of inferiority. If this be so, it is not by reason of anything found in the act, but solely because the colored race chooses to put that construction upon it.” The resulting legal principle—that public accommodations could be “separate but equal”—would last for more than half a century.
  • The sole dissenter, John Marshall Harlan, objecting to the establishment of separate classes of citizens, insisted that the achievement of the United States had been the establishment, by amendment, of a Constitution that was blind to race. “Our constitution is color-blind, and neither knows nor tolerates classes among citizens,” Harlan wrote, and it is therefore a plain violation of the Constitution “for a state to regulate the enjoyment by citizens of their civil rights solely upon the basis of race.”
  • What all these laws had in common, Harlan argued, was that they were based on race. And yet a war had been fought and won to establish that laws in the United States could not be based on race; nor could citizenship be restricted by race. The court’s opinion in Plessy, Harlan warned, was so dreadfully in error as to constitutional principles that “the judgment this day rendered will, in time, prove to be quite as pernicious as the decision made by this tribunal in the Dred Scott Case.”128 This prediction proved true.
  • Four centuries had passed since continents, separated by oceans, had met again. A century had passed since Jefferson had declared all men equal. Three decades had passed since the Fourteenth Amendment had declared all persons born or naturalized in the United States to be citizens.
  • And now the Supreme Court ruled that those who would set aside equality in favor of separation had not violated the nation’s founding truths. In one of the most wrenching tragedies in American history—a chronicle not lacking for tragedy—the Confederacy had lost the war, but it had won the peace.
  • Lippmann started out as a socialist, when even mentioning the masses hinted at socialism; The Masses was the name of a socialist monthly, published in New York, and, especially after the Russian Revolution of 1917, which brought the Bolshevists to power (“bol’shinstvo” means “the majority”), “the masses” sounded decidedly Red.
  • But Lippmann soon began to write about the masses as “the bewildered herd,” unthinking and instinctual, and as dangerous as an impending stampede. For Lippmann, and for an entire generation of intellectuals, politicians, journalists, and bureaucrats who styled themselves Progressives—the term dates to 1910—the masses posed a threat to American democracy.
  • This change was wrought in the upheaval of the age. In the years following the realigning election of 1896, everything seemed, suddenly, bigger than before, more crowded, and more anonymous: looming and teeming. Even buildings were bigger: big office buildings, big factories, big mansions, big museums. Quantification became the only measure of value: how big, how much, how many.
  • To fight monopolies, protect the people, and conserve the land, the federal government grew bigger, too; dozens of new federal agencies were founded in this era,
  • “Mass” came to mean anything that involved a giant and possibly terrifying quantity, on a scale so great that it overwhelmed existing arrangements—including democracy. “Mass production” was coined in the 1890s, when factories got bigger and faster, when the number of people who worked in them skyrocketed, and when the men who owned them got staggeringly rich.
  • “Mass migration” dates to 1901, when nearly a million immigrants were entering the United States every year, “mass consumption” to 1905, “mass consciousness” to 1912. “Mass hysteria” had been defined by 1925 and “mass communication” by 1927, when the New York Times described the radio as “a system of mass communication with a mass audience.”3
  • And the masses themselves? They formed a mass audience for mass communication and had a tendency, psychologists believed, to mass hysteria—the political stampede—posing a political problem unanticipated by James Madison and Thomas Jefferson,
  • To meet that challenge in what came to be called the Progressive Era, activists, intellectuals, and politicians campaigned for and secured far-reaching reforms that included municipal, state, and federal legislation.
  • Their most powerful weapon was the journalistic exposé. Their biggest obstacle was the courts, which they attempted to hurdle by way of constitutional amendments. Out of these campaigns came the federal income tax, the Federal Reserve Bank, the direct election of U.S. senators, presidential primaries, minimum-wage and maximum-hour laws, women’s suffrage, and Prohibition.
  • And all of what Progressives accomplished in the management of mass democracy was vulnerable to the force that so worried the unrelenting Walter Lippmann: the malleability of public opinion, into mass delusion.
  • Progressives championed the same causes as Populists, and took their side in railing against big business, but while Populists generally wanted less government, Progressives wanted more, seeking solutions in reform legislation and in the establishment of bureaucracies, especially government agencies.6
  • Populists believed that the system was broken; Progressives believed that the government could fix it. Conservatives, who happened to dominate the Supreme Court, didn’t believe that there was anything to fix but believed that, if there was, the market would fix it. Notwithstanding conservatives’ influence in the judiciary, Progressivism spanned both parties.
  • Woodrow Wilson himself admitted, “When I sit down and compare my views with those of a Progressive Republican I can’t see what the difference is.”7
  • Much that was vital in Progressivism grew out of Protestantism, and especially out of a movement known as the Social Gospel, adopted by almost all theological liberals and by a large number of theological conservatives,
  • The Social Gospel movement was led by seminary professors—academic theologians who accepted the theory of evolution, seeing it as entirely consistent with the Bible and evidence of a divinely directed, purposeful universe; at the same time, they fiercely rejected the social Darwinism of writers like Herbert Spencer, the English natural scientist who coined the phrase “the survival of the fittest” and used the theory of evolution to defend all manner of force, violence, and oppression.
  • argued that fighting inequality produced by industrialism was an obligation of Christians: “We must make men believe that Christianity has a right to rule this kingdom of industry, as well as all the other kingdoms of this world.”9 Social Gospelers brought the zeal of abolitionism to the problem of industrialism.
  • In 1908, Methodists wrote a Social Creed and pledged to fight to end child labor and to promote a living wage. It was soon adopted by the thirty-three-member Federal Council of Churches, which proceeded to investigate a steelworkers’ strike in Bethlehem, ultimately taking the side of the strikers.10
  • Washington, in the debate over the annexation of the Philippines, Americans revisited unsettled questions about expansion that had rent the nation during the War with Mexico and unsettled questions about citizenship that remained the unfinished business of Reconstruction. The debate also marked the limits of the Progressive vision: both sides in this debate availed themselves, at one time or another, of the rhetoric of white supremacy. Eight million people of color in the Pacific and the Caribbean, from the Philippines to Puerto Rico, were now part of the United States, a nation that already, in practice, denied the right to vote to millions of its own people because of the color of their skin.
  • “You are undertaking to annex and make a component part of this Government islands inhabited by ten millions of the colored race, one-half or more of whom are barbarians of the lowest type,” said Ben Tillman, a one-eyed South Carolina Democrat who’d boasted of having killed black men and expressed his support for lynch mobs. “It is to the injection into the body politic of the United States of that vitiated blood, that debased and ignorant people, that we object.”
  • Tillman reminded Republicans that they had not so long ago freed slaves and then “forced on the white men of the South, at the point of the bayonet, the rule and domination of those ex-slaves. Why the difference? Why the change? Do you acknowledge that you were wrong in 1868?”14
  • The war that began in Cuba in 1898 and was declared over in the Philippines in 1902 dramatically worsened conditions for people of color in the United States, who faced, at home, a campaign of terrorism. Pro-war rhetoric, filled with racist venom, only further incited American racial hatreds. “If it is necessary, every Negro in the state will be lynched,” the governor of Mississippi pledged in 1903.
  • By one estimate, someone in the South was hanged or burned alive every four days. The court’s decision in Plessy v. Ferguson meant that there was no legal recourse to fight segregation, which grew more brutal with each passing year.
  • Nor was discrimination confined to the South. Cities and counties in the North and West passed racial zoning laws, banning blacks from the middle-class communities. In 1890, in Montana, blacks lived in all fifty-six counties in the state; by 1930, they’d been confined to just eleven. In Baltimore, blacks couldn’t buy houses on blocks where whites were a majority.
  • In 1917, in Buchanan v. Warley, the Supreme Court availed itself of the Fourteenth Amendment not to guarantee equal protection for blacks but to guarantee what the court had come to understand as the “liberty of contract”—the liberty of businesses to discriminate.16
  • A generation earlier, he’d have become a preacher, like his father, but instead he became a professor of political science.23 In the academy and later in the White House, he dedicated himself to the problem of adapting a Constitution written in the age of the cotton gin to the age of the automobile.
  • “We have grown more and more inclined from generation to generation to look to the President as the unifying force in our complex system, the leader both of his party and of the nation. To do so is not inconsistent with the actual provisions of the Constitution; it is only inconsistent with a very mechanical theory of its meaning and intention.” A president’s power, Wilson concluded, is virtually limitless: “His office is anything he has the sagacity and force to make it.”24
  • the U.S. Supreme Court overruled much Progressive labor legislation. The most important of these decisions came in 1905. In a 5–4 decision in Lochner v. New York, the U.S. Supreme Court voided a state law establishing that bakers could work no longer than ten hours a day, six days a week, on the ground that the law violated a business owner’s liberty of contract, the freedom to forge agreements with his workers, something the court’s majority said was protected under the Fourteenth Amendment.
  • The laissez-faire conservatism of the court was informed, in part, by social Darwinism, which suggested that the parties in disputes should be left to battle it out, and if one side had an advantage, even so great an advantage as a business owner has over its employees, then it should win.
  • In a dissenting opinion in Lochner, Oliver Wendell Holmes accused the court of violating the will of the people. “This case is decided upon an economic theory which a large part of the country does not entertain,” he began. The court, he said, had also wildly overreached its authority and had carried social Darwinism into the Constitution. “A Constitution is not intended to embody a particular economic theory,” Holmes wrote. “The Fourteenth Amendment does not enact Mr. Herbert Spencer’s Social Statics.”
  • Wilson pointed out that the Constitution, written before mass industrialization, couldn’t be expected to have anticipated it, and couldn’t solve the problems industrialization had created, unless the Constitution were treated like a living thing that, like an organism, evolved.
  • Critics further to the left argued that the courts had become an instrument of business interests. Unions, in fact, often failed to support labor reform legislation, partly because they expected it to be struck down by the courts as unconstitutional, and partly because they wanted unions to provide benefits to their members, which would be an argument for organizing.
  • conservatives insisted that the courts were right to protect the interests of business and that either market forces would find a way to care for sick, injured, and old workers, or (for social Darwinists) the weakest, who were not meant to thrive, would wither and die.
  • “No other social movement in modern economic development is so pregnant with benefit to the public,” wrote the editor of the Journal of the American Medical Association. “At present the United States has the unenviable distinction of being the only great industrial nation without compulsory health insurance,” the Yale economist Irving Fisher pointed out in 1916.36 It would maintain that unenviable distinction for a century.
  • In California, the legislature passed a constitutional amendment providing for universal health insurance. But when it was put on the ballot for ratification, a federation of insurance companies took out an ad in the San Francisco Chronicle warning that it “would spell social ruin in the United States.” Every voter in the state received in the mail a pamphlet with a picture of the kaiser and the words “Born in Germany. Do you want it in California?” The measure was defeated. Opponents called universal health insurance “UnAmerican, Unsafe, Uneconomic, Unscientific, Unfair and Unscrupulous.”
  • “Scientific management has no place for a bird that can sing and won’t sing,” answered Taylor. “We are not . . . dealing with horses nor singing birds,” Wilson told Taylor. “We are dealing with men who are a part of society and for whose benefit society is organized.
  • Jim Crow thrived because, after the end of Reconstruction in 1877, reformers who had earlier fought for the cause of civil rights abandoned it for the sake of forging a reunion between the states and the federal government and between the North and the South. This wasn’t Wilson’s doing; this was the work of his generation, the work of the generation that came before him, and the work of the generation that would follow him, an abdication of struggle, an abandonment of justice.
  • War steered the course of American politics like a gale-force wind. The specter of slaughter undercut Progressivism, suppressed socialism, and produced anticolonialism. And, by illustrating the enduring wickedness of humanity and appearing to fulfill prophecies of apocalypse as a punishment for the moral travesty of modernism, the war fueled fundamentalism.
  • Bryan’s difficulty was that he saw no difference between Darwinism and social Darwinism, but it was social Darwinism that he attacked, the brutality of a political philosophy that seemed to believe in nothing more than the survival of the fittest, or what Bryan called “the law of hate—the merciless law by which the strong crowd out and kill the weak.”77
  • Germany was the enemy, the same Germany whose model of education had secularized American colleges and universities, which were now teaching eugenics, sometimes known as the science of human betterment, calling for the elimination from the human race of people deemed unfit to reproduce on the basis of their intelligence, criminality, or background.
  • Nor was this academic research without consequence. Beginning in 1907, with Indiana, two-thirds of American states passed forced sterilization laws.
  • In 1916, Madison Grant, the president of the Museum of Natural History in New York, who had degrees from Yale and Columbia, published The Passing of the Great Race; Or, the Racial Basis of European History, a “hereditary history” of the human race, in which he identified northern Europeans (the “blue-eyed, fair-haired peoples of the north of Europe” that he called the “Nordic race”) as genetically superior to southern Europeans (the “dark-haired, dark-eyed” people he called “the Alpine race”) and lamented the presence of “swarms of Jews” and “half-breeds.” In the United States, Grant argued, the Alpine race was overwhelming the Nordic race, threatening the American republic, since “democracy is fatal to progress when two races of unequal value live side by side.”79
  • fundamentalists were, of course, making an intellectual argument, if one that not many academics wanted to hear. In 1917, William B. Riley, who, like J. Frank Norris, had trained at the Southern Baptist Theological Seminary, published a book called The Menace of Modernism, whose attack on evolution included a broader attack on the predominance in public debate of liberal faculty housed at secular universities—and the silencing of conservative opinion.
  • The horror of the war fueled the movement, convincing many evangelicals that the growing secularization of society was responsible for this grotesque parade of inhumanity: mass slaughter. “The new theology has led Germany into barbarism,” one fundamentalist argued in 1918, “and it will lead any nation into the same demoralization.”
  • “If my re-election as President depends upon my getting into war, I don’t want to be President,” Wilson said privately. “He kept us out of war” became his campaign slogan, and when Theodore Roosevelt called that an “ignoble shirking of responsibility,” Wilson countered, “I am an American, but I do not believe that any of us loves a blustering nationality.”
  • Wilson had in fact pledged not to make the world democratic, or even to support the establishment of democratic institutions everywhere, but instead to establish the conditions of stability in which democracy was possible.
  • nearly five million were called to serve. How were they to be persuaded of the war’s cause? In a speech to new recruits, Wilson’s new secretary of state, Robert Lansing, ventured an explanation. “Were every people on earth able to express their will, there would be no wars of aggression and, if there were no wars of aggression, then there would be no wars, and lasting peace would come to this earth,” Lansing said, stringing one conditional clause after another. “The only way that a people can express their will is through democratic institutions,” Lansing went on. “Therefore, when the world is made safe for democracy . . . universal peace will be an accomplished fact.”88
  • Wilson, the political scientist, tried to earn the support of the American people with an intricate theory of the relationship between democracy and peace. It didn’t work. To recast his war message and shore up popular support, he established a propaganda department,
  • Social scientists called the effect produced by wartime propaganda “herd psychology”; the philosopher John Dewey called it the “conscription of thought.”89
  • To suppress dissent, Congress passed a Sedition Act in 1918. Not since the Alien and Sedition Acts of 1798 had Congress so brazenly defied the First Amendment. Fewer than two dozen people had been arrested under the 1798 Sedition Act. During the First World War, the Justice Department charged more than two thousand Americans with sedition and convicted half of them. Appeals that went to the Supreme Court failed.
  • “If we want real peace,” Du Bois wrote, “we must extend the democratic ideal to the yellow, brown, and black peoples.” But after the United States entered the war, Creel called thirty-one black editors and publishers to a conference in Washington and warned them about “Negro subversion.”
  • Du Bois asked black men who could not vote in the United States to give their lives to make the world “safe for democracy” and asked black people to hold off on fighting against lynchings, whose numbers kept rising.91
  • Wilson signed a tax bill, raising taxes on incomes, doubling a tax on corporate earnings, eliminating an exemption for dividend income, and introducing an estate tax and a tax on excess profits. Rates for the wealthiest Americans rose from 2 percent to 77, but most people paid no tax at all (80 percent of the revenue was drawn from the income of the wealthiest 1 percent of American families).
  • Wars, as ever, expanded the powers of the state. It rearranged the relationship between the federal government and business, establishing new forms of cooperation, oversight, and regulation that amounted to erecting a welfare state for business owners.
  • As the war drew to a close, the reckoning began. American losses were almost trivial compared to the staggering losses in European nations. Against America’s 116,000 casualties, France lost 1.6 million lives, Britain 800,000, and Germany 1.8 million. Cities across Europe lay in ashes; America was untouched. Europe, composed of seventeen countries before the war, had splintered into twenty-six, all of them deeply in debt, and chiefly to Americans.
  • Before the war, Americans owed $3.7 billion to foreigners; after the war, foreigners owed $12.6 billion to Americans. Even the terrifying influenza epidemic of 1918, which took 21 million lives worldwide, claimed the lives of only 675,000 Americans. The war left European economies in ruins, America’s thriving. In the United States, steel production rose by a quarter between 1913 and 1920; everywhere else, it fell by a third.98 The Armistice came on November
  • Wilson left a lasting legacy: his rhetoric of self-determination contributed to a wave of popular protests in the Middle East and Asia, including a revolution in Egypt in 1919; made the nation-state the goal of stateless societies; and lies behind the emergence and force of anticolonial nationalism.100
  • Thirty black men were lynched in 1917, twice as many the next year, and in 1919, seventy-six, including ten veterans, some still wearing their uniforms, having fought, some people thought, the wrong war.101
  • IN 1922, when Walter Lippmann turned thirty-two, he wrote a book called Public Opinion, in which he concluded that in a modern democracy the masses, asked to make decisions about matters far removed from their direct knowledge, had been asked to do too much. “Decisions in a modern state tend to be made by the interaction, not of Congress and the executive, but of public opinion and the executive,” he’d once observed.108 Mass democracy can’t work, Lippmann argued, because the new tools of mass persuasion—especially mass advertising—meant that a tiny minority could very easily persuade the majority to believe whatever it wished them to believe.
  • The best hope for mass democracy might have seemed to be the scrupulously and unfailingly honest reporting of news, but this, Lippmann thought, was doomed to fall short, because of the gap between facts and truth.
  • Reporters chronicle events, offering facts, but “they cannot govern society by episodes, incidents, and eruptions,” he said.109 To govern, the people need truth, sense out of the whole, but people can’t read enough in the morning paper or hear enough on the evening news to turn facts into truth when they’re driven like dray horses all day.
woodlu

Why Democrats' tax plans are such a mess | The Economist - 0 views

  • 0E BIDEN promised to pay for his big social-spending proposals by raising taxes on the rich and nobody else.
  • Now Democrats are rushing to find a big pot of money without raising headline rates of tax at all.
  • predicting that they would soon reach a compromise on a social-spending bill that would pass in both the House of Representatives and the Senate, where they cannot afford a single dissenting vote in their ranks.
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  • Kyrsten Sinema of Arizona,
  • satisfy two centrists:
  • Joe Manchin of West Virginia
  • desire for higher tax revenues without higher tax rates has left Democrats scrambling to make deep changes to how some levies work
  • new minimum tax on the biggest corporations’ accounting profits, which can exceed those declared to the tax authorities.
  • is a levy on
  • firms that buy back their own stock, a longtime bugbear on the left
  • a reform to the federal capital-gains tax that is designed to ensnare the ultra-rich. It would tax them annually on the paper gains of their investment portfolios, rather than when assets are sold, as under the current system
  • firms could avoid the tax attached to them by paying dividends instead.
  • no sound economic reason for penalising share buy-backs
  • A tax on the book profits of companies would outsource tax rules to unaccountable accounting bodies, reduce the efficacy of desirable tax deductions for investment and, by interfering with the ability to carry forward losses, play havoc with firms whose profits are volatile.
  • The “mark-to-market” capital gains tax is a messy attempt to rapidly extract enormous amounts from a tiny number of the very rich
  • proposal which is even more poorly designed, and which Mr Manchin is right to oppose
  • That would ultimately be bad for investment and the incentive to innovate, and would get in the way of the widespread ownership of equities.
  • straightforward result of their fragile control of Congress and the idiosyncrasies of two of their senators
  • failed to bring in straightforward reforms that raise revenue by enlarging the tax base
  • abolishing the egregious exemption that resets accrued capital gains to zero when owners die and pass on their estates.
  • Taxing capital gains at death, as Mr Biden first proposed, would raise more than $200bn over a decade—not far off the “several hundred billion” Democrats say the tax on investment portfolios would yield
  • lobbyists defeated the idea
  • also preserved the carried-interest loophole, which lets investment managers class their fees as lightly taxed capital gains, not income.
  • lifting the cap on an exemption from federally taxable income of money used to pay state and local taxes. Doing that would benefit the wealthy, narrow the tax base and subsidise high-tax states.
  • Mr Biden ignored the example of Europe. Its social spending is funded using broad-based and efficient taxes, most notably value-added tax, a levy on consumption
  • unfriendly to economic growth to begin with. Narrowing the target further—the capital-gains reform would apply only to billionaires and those with more than $100m in annual income sustained over three years
  • this tax would apply only to securities traded on public markets, with different rules for stakes in privately held firms, it would deter entrepreneurs from floating their companies on the stock exchange.
  • Democrats have pretended that raising taxes on businesses would have no negative effect on wages, contrary to the overwhelming consensus among economists.
  • The failure to agree on a tax plan carries echoes of doomed Republican attempts, under Donald Trump, to “repeal and replace” the Obamacare health-insurance system.
  • Democrats will have to confront the fact that permanently expanding the welfare state without damaging the economy means winning an argument for higher taxes, rather than always telling voters that some rich person will pay.
Javier E

Bernie Sanders's Tax Plan Would Test an Economic Hypothesis - The New York Times - 0 views

  • in 2011, the economists Peter Diamond of M.I.T. and Emmanuel Saez of the University of California, Berkeley, drew attention with a paper estimating that the revenue-maximizing income tax rate on high earners — the combined state and federal rate after which further tax increases would actually cause revenue to fall — is 73 percent.
  • Mr. Saez, who is perhaps best known by the public for his work with Thomas Piketty on rising income inequality, said a key effect of such a large tax increase would be to push down the pretax incomes of the ultrarich.
  • “My feel is that the reasoning behind Sanders’s tax plan is not so much tax revenue generation from top earners but rather make top tax rates so high so as to discourage ‘greed,’ defined broadly as extracting income at the expense of the rest of the economy as opposed to real productive behavior,” Mr. Saez wrote in an email. “I think pretax top incomes would finally start to decline.”
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  • Much higher tax rates on the highest earners can generate revenue to pay for new programs, and they can encourage a more equal distribution of pretax income. But these two objectives are in tension with each other — the more Mr. Saez is right that high rates will discourage ultrahigh incomes, the less revenue Mr. Sanders will get from his new taxes on ultrahigh earners.
  • Sanders’s plan would push rates near the revenue maximizing level: His plan would result in an all-in tax rate of just over 65 percent on income between $500,000 and $2 million.
  • Mr. Sanders’s 73 percent rate would apply only to ordinary income and only to people making over $10 million a year, which is not very many people.
  • Like much research about the interaction between taxes and the economy, theories about the revenue-maximizing tax rate are subject to high levels of both controversy and uncertainty. Some claims can be identified as clearly wrong — see, for example, the Tax Foundation’s claim that large across-the-board tax cuts proposed by Marco Rubio would cause revenues to be higher within a decade — but the range of possibly correct answers about what tax changes will do to pretax incomes remains large.
  • Mr. Saez and Mr. Diamond report a range of uncertainty around their own estimate of 73 percent as the revenue-maximizing top rate, which depends on the open question of how elastic taxable income is — that is, how much it declines when you tax people more.
  • Joel Slemrod, a collaborator of Mr. Saez’s, told The Washington Post in 2010 that the revenue-maximizing rate was “60 percent or higher.” Some conservative economists argue for lower rates by expressing concern that the revenue-maximizing rate will decline over time.
  • noted that most existing research on revenue-maximizing tax rates looks at the years immediately after a tax change, and therefore could miss long-run effects on taxpayer behavior. What if a high tax rate not only encourages people to work less, but also discourages them from going into certain high-paying fields in the first place? A result could be that revenues would first go up, and then down
  • The problem with this theory is that it is very difficult to test. Lots of factors besides tax rates affect incomes and economic growth, so looking over a long time range and figuring out which changes to incomes were caused by tax changes is very har
  • “There are no truly convincing estimates of the long-run elasticity,”
  • it is a good thing that Mr. Sanders’s plan does not rely mostly on these high-earner taxes. More than 80 percent of his proposed tax increases to pay for his health plan come from broad-based income and payroll taxes that would apply to nearly all
Javier E

Black families pay significantly higher property taxes - The Washington Post - 0 views

  • State by state, neighborhood by neighborhood, black families pay 13 percent more in property taxes each year than a white family would in the same situation, a massive new data analysis shows.
  • Black-owned homes are consistently assessed at higher values, relative to their actual sale price, than white homes
  • To expose the structural and historical factors behind these discriminatory property tax assessments, the economists analyzed more than a decade of tax assessment and sales data for 118 million homes throughout the country.
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  • In almost every state, property tax assessments were higher in areas with more black and Hispanic residents
  • The gap between white families and minority households remains large — 10 percent — when you combine data for Hispanic and black families
  • “We’ve always considered that in addition to paying your regular tax, there was a black tax that goes along with it,”
  • “It’s almost like it’s in the soil,” he said. “It stretches all across the board. It’s not just real estate. It’s not just housing. It’s not just food deserts. It’s not just racism on the street. It’s not just that you can’t get a cab at night. It’s everything.”
  • “The structure of the property tax system operates to disadvantage black Americans,” she said. “That’s how structural racism is. It’s built into the system. The property tax system itself discriminates against black Americans.”
  • One in five black households have reported missing a mortgage payment since mid-March, compared with about 1 in 20 white ones
  • Facing the accumulated disadvantages of centuries of repression and systemic racism, black Americans are likely to earn less than similar white workers in lower-paying service jobs, a dynamic that makes it more difficult to buy a home. Now, by hitting those jobs first and hardest, the coronavirus pandemic has made a bad situation worse
  • “During the Jim Crow era, local white officials routinely manipulated property tax assessments to overburden and punish black populations and as a hidden tax break to landowning white gentry,”
  • white officials going to extreme lengths to hike black taxes. In one such case in 1932, a black North Carolina resident was taxed for the value of two stray dogs that had been seen on her property.
  • Many county assessors intentionally overvalued black properties, sometimes in direct retaliation for black political action
  • As early as 1901, W.E.B. Du Bois showed that because of their unequal tax burden, black people paid more in taxes than they received in public education funds,
  • The fiction that “black people take services but they don’t pay taxes” remains widespread,
  • The values of black-owned homes tend to grow more slowly than values of white-owned ones. The white people who make up the vast majority of home buyers tend to avoid black neighborhoods, which cuts black sellers off from many potential buyers.
  • Given that difference in price appreciation, if an assessor assumes a black-owned home gains value as quickly as a white-owned home, the assessed value of the black-owned home will quickly outstrip its market value.
  • Nearby white families benefit from the opposite trend: Their homes increase in value more rapidly than their assessments, giving them an ever-growing tax break.
  • the appeals process illustrates how much of the property tax system functions in a way that penalizes black wealth, even as it appears neutral on its face.
  • While neighborhood and race are the biggest drivers of the property tax gap, the economists found others
  • As part of their study, the economists reviewed 3.4 million property tax appeals from Chicago and surrounding Cook County and found black homeowners were significantly less likely to appeal their property tax assessments. When they did appeal, black homeowners were less likely to win. And when they won, they earned smaller assessment reductions.
  • “White people feel more comfortable working within the system that was set up to make them succeed,”
  • “It makes sense that a black family who has been disenfranchised from these systems wouldn’t challenge it.” It is also difficult to work within the system for Latinos, many of whom do not speak English as a first language, she added.
  • was not taught about appealing property taxes or any of the other small strategies white homeowners have used to accumulate generational wealth.
  • “They feel their property taxes were being used to push them out of their places, especially when communities started gentrifying,” Avenancio-León said. It helped him see how property taxation can be used as a means of social engineering.
  • the duo, then working on doctorate degrees at the University of California at Berkeley, combined 118 million real estate transactions and assessments from 2005 to 2016 with maps of more than 75,000 local taxing entities — such as counties, school districts, airport authorities and utility districts.
  • They used the maps to sort homes into areas that faced the same property tax burdens, identified the races of homeowners using federal mortgage data, and looked at every time a dwelling was assessed and then sold in the same year. That allowed them to compare a home’s assessed value and its market value, alongside the homeowner’s race and ethnicity.
  • The property tax gaps are worst for low earners, but even the highest-earning black Americans pay more on average in property taxes than similarly well-off white peers living nearby.
  • Whether or not these gaps were caused by explicit racism, Brown said, “you should be just as outraged that this is going on, and we should find a way to fix it.”
martinelligi

Live: 1st Biden-Trump Presidential Debate : NPR - 0 views

  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  • Biden’s 2019 tax return shows taxable income of $944,737 and a federal tax bill of $299,346. Harris and her husband, Doug Emhoff, reported $3,018,127 in taxable income and paid $1,185,628 in taxes.
  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
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  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  • President Trump has baselessly claimed that widespread voter fraud is rampant in both in-person and mail voting systems, without providing any evidence. His challenger, former Vice President Joe Biden, has accused Trump of eroding confidence in U.S. democracy, and has stoked fears about whether Trump will actually leave office if voted out.
  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  • “We don’t expect Chris or our other moderators to be fact-checkers.”
  • of the election, a subject on which the two candidates have divergent views. President Trump has baselessly claimed that widespread voter fraud is rampant in both in-person and mail voting systems, without providing any evidence. His challenger, former Vice President Joe Biden, has accused Trump of eroding confidence in U.S. democracy, and has stoked fears about whether Trump will actually leave office if voted out.
  • President Trump has baselessly claimed that widespread voter fraud is rampant in both in-person and mail voting systems, without providing any evidence. His challenger, former Vice President Joe Biden, has accused Trump of eroding confidence in U.S. democracy, and has stoked fears about whether Trump will actually leave office if voted out.
  • President Trump has baselessly claimed that widespread voter fraud is rampant in both in-person and mail voting systems, without providing any evidence. His challenger, former Vice President Joe Biden, has accused Trump of eroding confidence in U.S. democracy, and has stoked fears about whether Trump will actually leave office if voted out.
  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  • “We don’t expect Chris or our other moderators to be fact-checkers.”
  • Trump’s and Biden’s records The Supreme Court: This issue has gained new importance with the announcement of Trump’s nominee to replace Justice Ruth Bader Ginsburg. COVID-19: Daily cases are on the rise in nearly half of U.S. states. The economy: Expect this to be closely tied to the pandemic. Race and violence in U.S. cities: The framing of this topic has drawn criticism, but protests against racism and police brutality are ongoing around the country. The integrity of the election: See the latest on election security from NPR here.
  • Trump’s and Biden’s records The Supreme Court: This issue has gained new importance with the announcement of Trump’s nominee to replace Justice Ruth Bader Ginsburg. COVID-19: Daily cases are on the rise in nearly half of U.S. states. The economy: Expect this to be closely tied to the pandemic. Race and violence in U.S. cities: The framing of this topic has drawn criticism, but protests against racism and police brutality are ongoing around the country. The integrity of the election: See the latest on election security from NPR here.
  • Biden’s 2019 tax return shows taxable income of $944,737 and a federal tax bill of $299,346. Harris and her husband, Doug Emhoff, reported $3,018,127 in taxable income and paid $1,185,628 in taxes.
  • Biden’s 2019 tax return shows taxable income of $944,737 and a federal tax bill of $299,346. Harris and her husband, Doug Emhoff, reported $3,018,127 in taxable income and paid $1,185,628 in tax
  • Biden’s 2019 tax return shows taxable income of $944,737 and a federal tax bill of $299,346. Harris and her husband, Doug Emhoff, reported $3,018,127 in taxable income and paid $1,185,628 in taxes.
  • The New York Times reports that Trump’s tax returns show millions of dollars in losses and that Trump paid only $750 in income taxes in each of 2016 and 2017, and in 10 of the last 15 years paid no income tax at all. The report also raised questions about questionable tax deductions made by Trump that could run afoul of tax law.
  • The New York Times reports that Trump’s tax returns show millions of dollars in losses and that Trump paid only $750 in income taxes in each of 2016 and 2017, and in 10 of the last 15 years paid no income tax at all. The report also raised questions about questionable tax deductions made by Trump that could run afoul of tax law.
  • almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  • There are five weeks to go until Election Day, but almost a million ballots have already been cast in this election, according to Michael McDonald, a turnout expert at the University of Florida who runs the U.S. Election Project, which tracks voting. That’s up from less than 10,000 early votes cast at this time four years ago.
  •  
    (My highlighter was not working at all but some important points in this article are:) -the moderator will not fact check -The topics covered will be Trump and Biden's records, COVID, SCOTUS, The economy, Race and violence in the USA, Integrity of election - Trump's tax records are likely to be scrutinized -Many sitting presidents do not do well in debates for re-election...will Mr. Trump?
Javier E

The Corrosive Effect of Apple's Tax Avoidance - NYTimes.com - 0 views

  • In fact, as Apple executives tried to point out at the Senate hearing at which their tax strategies were detailed, they could have chosen to pay much less in American taxes than they did.
  • The news in the Senate report about Apple was not that the company had found ways to shift income to low-tax jurisdictions. Lots of multinational companies do that. The news was that Apple had found a way to move a large part of its income to subsidiaries that claimed to not exist anywhere, at least when it came to paying taxes.
  • It had been common knowledge that private equity firms had found ways to have most of the money earned by partners taxed at low capital gains tax rates, through what is known as carried interest. What came out last year was that some had found a way to treat all of their compensation that way.
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  • “The general American public should not have to make up the balance as corporations avoid paying billions in U.S. taxes,” Senator McCain said.
  • As Tim Cook, Apple’s chief executive, testified, there is a whole range of tactics Apple has chosen not to use.
  • “Apple’s basic structure and planning described in the memorandum appears to be appropriate corporate tax planning in today’s environment
  • If you look at taxes as Senator McCain seems to do, one person finding a way around taxes means the rest of us have to pay more. After all, the government must raise enough money to meet its obligations. But that is not the way a lot of Republicans look at it now. They have denounced taxes for so long that some of them seem to view those who manage to legally avoid paying taxes as heroes. Some of them also seem to think that the government they help to run is evil and that depriving it of revenue is therefore a good thing.
  • In theory, under the current law, American multinationals will pay American taxes on all profits — less whatever foreign taxes they paid — when they bring the profits home. That is known as “deferred” taxation. But they try to avoid doing that, and hope they can persuade the government to let them pay a minimal tax on such repatriated profits, rather than the full rate.
  • Multinational corporations have been campaigning for a “territorial” tax system, in which the United States would tax only profits generated in this country. Doing that without finding a way to close down the loopholes that allow companies to move taxes around would simply ratify the current situation, with the difference that companies would no longer face the possibility of paying American taxes when they brought the money home.
  • closing those loopholes may be impossible under the current system. Companies can have one subsidiary pay any price they want to another subsidiary, so long as it is reasonably close to what an arm’s-length negotiation would produce. The I.R.S. is overmatched when it tries to challenge such pricing, particularly because there are often no comparable deals
  • To get anything done, Congress will have to agree that Senator McCain’s way of looking at taxes is correct, and accept that giving a tax break to one person or company must mean forcing others to pay more than they otherwise would.
leilamulveny

How Joe Biden's Tax Plan Could Affect You - WSJ - 0 views

  • Counting both tax increases and tax cuts, the Biden plan would raise between $2 trillion and $3 trillion over a decade, according to recent estimates by the Tax Policy Center and the American Enterprise Institute.
  • It would send revenue as a share of the economy to near the levels it reached in the late 1990s.
  • For corporations, he would raise the tax rate to 28% from 21%, impose a new minimum tax and raise taxes on foreign income. For individuals, he would raise the top rate to 39.6% from 37%, create new limits on deductions and impose the 12.4% Social Security payroll tax on wages above $400,000. High-income owners of pass-through businesses that don’t pay the corporate tax would lose a break they got in 2017.
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  • Also, the Biden plan—or some version of it—is likely to advance in Congress only if Democrats keep a majority in the House and take control of the Senate
  • they only want to repeal parts of the law and that they would focus those changes on corporations and households making more than $400,000.
  • the top 1% of households would see their after-tax income drop by 16% in 2022. That’s an average tax increase of $265,640.
  • The middle 20% of households would get a tax cut worth 1% of after-tax income, or an average of $620.
  • But there are two main ways in which middle-income families could pay more. One is through Mr. Biden’s proposed reinstatement of the individual mandate to buy health insurance. The campaign, citing Trump administration language, describes that as a fee, not a tax. The payments are required by the tax code, and the Supreme Court has ruled that the penalty for failing to purchase health insurance is a tax.
  • So anyone owning stocks could be affected and eventually, companies may raise wages less than they otherwise would.
  • He would temporarily expand the child tax credit to $3,000 from $2,000 and add another $600 for children under age 6
xaviermcelderry

Trump's Taxes Show Chronic Losses and Years of Income Tax Avoidance - The New York Times - 1 views

  • The Times obtained Donald Trump’s tax information extending over more than two decades, revealing struggling properties, vast write-offs, an audit battle and hundreds of millions in debt coming due.
  • Donald J. Trump paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750. He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made.
    • martinelligi
       
      investigation with IRV
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    • martinelligi
       
      TV show made by Trump, contestants compete for a job with him
  • often direct conflict of interest with his job as presiden
  • “Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including paying millions in personal taxes since announcing his candidacy in 2015,” Mr. Garten said in a statement.
  • Ultimately, Mr. Trump has been more successful playing a business mogul than being one in real life.
  • An adverse ruling could cost him more than $100 million.
  • “There’s nothing to learn from them,” he told The Associated Press in 2016. There is far more useful information, he has said, in the annual financial disclosures required of him as president — which he has pointed to as evidence of his mastery of a flourishing, and immensely profitable, business universe.
  • Most of Mr. Trump’s core enterprises — from his constellation of golf courses to his conservative-magnet hotel in Washington — report losing millions, if not tens of millions, of dollars year after year.
  • He reported paying taxes, in turn, on a number of his overseas ventures. In 2017, the president’s $750 contribution to the operations of the U.S. government was dwarfed by the $15,598 he or his companies paid in Panama, the $145,400 in India and the $156,824 in the Philippines.
  • The leak of Mr. Nixon’s small tax payment caused a precedent-setting uproar: Henceforth, presidents, and presidential candidates, would make their tax returns available for the American people to see.
  • that he might release the returns if President Barack Obama released his birth certificate.
  • He often claims that he cannot do so while unde
  • r audit — an argument refuted by his own I.R.S. commissioner.
  • Throughout his career, Mr. Trump’s business losses have often accumulated in sums larger than could be used to reduce taxes on other income in a single year. But the tax code offers a workaround: With some restrictions, business owners can carry forward leftover losses to reduce taxes in future years. That provision has been the background music to Mr. Trump’s life.
  • “They say, ‘Trump is getting rich off our nation,’” he said at a rally in Minneapolis last October. “I lose billions being president, and I don’t care. It’s nice to be rich, I guess, but I lose billions.”
    • martinelligi
       
      depreciation: a reduction in the value of an asset with the passage of time, due in particular to wear and tear.
  • “consulting fees” as a business expense across nearly all of his projects.
  • Mr. Trump reduced his taxable income by treating a family member as a consultant, and then deducting the fee as a cost of doing business.
  • The “consultants” are not identified in the tax records. But evidence of this arrangement was gleaned by comparing the confidential tax records to the financial disclosures Ivanka Trump filed when she joined the White House staff in 2017. Ms. Trump reported receiving payments from a consulting company she co-owned, totaling $747,622, that exactly matched consulting fees claimed as tax deductions by the Trump Organization for hotel projects in Vancouver and Hawaii.
  • Hair stylists, table linens, property taxes on a family estate — all have been deducted as business expenses.
  • he ethical quandaries created by Mr. Trump’s decision to keep his business while in the White House have been documented. But the full financial measure of his extraordinary confluence of interests — a president with a wealth of business entanglements at home and in myriad geopolitical hot spots — has remained elusive.
  • how heavily he has come to rely on leveraging his brand in ways that pose potential or direct conflicts of interest while he is president.
  • he president’s conflicts have been most evident with Turkey, where the business community and the authoritarian government of President Recep Tayyip Erdogan have not hesitated to leverage various Trump enterprises to their advantage.
  • Some of the largest payments from business groups for events or conferences at Mar-a-Lago and other Trump properties have come since Mr. Trump became president, the tax records show.
  • Beyond one-time payments for events or memberships, large corporations also pay rent for space in the few commercial buildings Mr. Trump actually owns.
  • his barrage of derogatory remarks about immigrants quickly cost him two of his biggest and easiest sources of cash — licensing deals with clothing and mattress manufacturers that had netted him more than $30 million. NBC, his partner in Miss Universe — source of nearly $20 million in profits — announced that it would no longer broadcast the pageant; he sold it soon after.
  • each new acquisition only fed the downward draft on his bottom line.
  • He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made.
  • Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.
  • The tax data examined by The Times provides a road map of revelations, from write-offs for the cost of a criminal defense lawyer and a mansion used as a family retreat to a full accounting of the millions of dollars the president received from the 2013 Miss Universe pageant in Moscow.
  • Indeed, his financial condition when he announced his run for president in 2015 lends some credence to the notion that his long-shot campaign was at least in part a gambit to reanimate the marketability of his name.
Javier E

Ending the Corporate Tax Hide-and-Seek - NYTimes.com - 0 views

  • As muddled and broken as the individual income tax system may be, the rules under which the government collects corporate levies are far more loophole-ridden and counterproductive.
  • Unlike individuals, multinational corporations can shuttle profits — and sometimes even their headquarters — around the globe in search of the jurisdiction willing to cut them the best deal on taxes (and often other economic incentives). Much of this occurs under the guise of “transfer pricing,” the terms under which one subsidiary of a multinational sells products to another subsidiary. The goal is to generate as high a share of profit as possible in the lowest-taxed jurisdictions.
  • subsidiaries of United States corporations operating in the top five tax havens (the Netherlands, Ireland, Bermuda, Switzerland and Luxembourg) generated 43 percent of their foreign profits in those countries in 2008, but had only 4 percent of their foreign employees and 7 percent of their foreign investment located there.
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  • All in all, it is a race to the bottom on the part of revenue-starved governments eager to attract even a relatively small number of new jobs.
  • As a consequence, the effective corporate tax rate in the United States fell to 17.8 percent in 2012 from 42.5 percent in 1960,
  • That’s just not fair at a time of soaring corporate profits and stagnant family incomes.
  • Business groups, naturally, say the best way to bring jobs and cash home is for Washington to stop taxing profits earned overseas by American companies altogether. But that idea makes little sense. While changing to this “territorial system” would allow some of the estimated $1.7 trillion of cash “trapped” overseas to come home free of tax, it would both cost the Treasury an estimated $130 billion in revenue over the next 10 years and provide greater incentives for American companies to continue to move jobs and production overseas.
  • the gaming of the tax system is becoming a global concern, with an action plan coming from the Organization for Economic Cooperation and Development in July. The O.E.C.D. should work toward taxing business profits where they actually occur, not where they’ve been shifted by some tax adviser.
  • we should consider taxing a greater share of the profits made by companies not at the corporate level, where they are subject to oh-so-much gaming, but rather at the shareholder level.
  • As corporate taxes have declined, corporate profits have increased. That has pushed up stock prices and been a boon to shareholders. It hardly seems unfair to ask those who already benefit from bargain tax rates on capital gains and dividends to share some of those gains with the government.
Javier E

What Happens When the 1% Move to Miami and Austin - Bloomberg - 0 views

  • A whopping 80% of New York City’s income tax revenue, according to one estimate, comes from the 17% of its residents who earn more than $100,000 per year. If just 5% of those folks decided to move away, it would cost the city almost one billion ($933 million) in lost tax revenue.
  • The large differentials in our current system of state and local taxation enable the mega-rich to save millions, and in some cases tens of millions or hundreds of millions of dollars a year, simply by moving from higher-tax states, most of them blue, to lower-tax states, which are typically red
  • While the pandemic has helped to accelerate remote work and potentially the geographic flexibility it allows, such migrations were more likely set in motion by Trump’s changes to the tax code: The so-called SALT deduction capped the amount of state and local taxes that can be deducted from federal taxes.
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  • Very little actual work or production is being relocated. What’s really changing are the addresses of those who own and control the capital
  • Until recently, high-tax cities had a fighting chance against their lower-tax rivals. That is why so many blue-state politicians have called for getting rid of the Trump-era caps and restoring the ability to deduct state and local taxes.
  • Some progressive economists have rightly countered that enabling the wealthiest Americans to write off their state and local tax payments is highly regressive, amounting to a tax break of $100 billion or more a year that flows mainly to the very rich
  • But eliminating those write-offs has created a race to the bottom that is already devastating the budgets of expensive coastal cities
  • Others recommend replacing the SALT deduction with a 15% credit for state and local taxes. Given the pressure from Democrats in impacted cities, this is something that the Biden-Harris administration may have to revisit. 
  • the effect of new remote technology on state and local taxes requires some serious scrutiny by all levels of government. As more Americans, especially the 1%, have flexibility about where they work, city and state governments will need to develop new revenue models that account for the locations of both the people and their businesses
  • When an advantaged class can live thousands of miles away from where they work and own assets, it deprives cities of a vital source of revenue.
yehbru

Op-ed: Biden plan to close tax loopholes for corporations isn't anti-business - 0 views

  • Recent weeks have seen corporate leaders and investors mobilize publicly and privately to oppose President Biden’s proposed overhaul to the tax code
  • But this political calculus belies the truth of Biden’s plan: eliminating tax loopholes for major multinational corporations would actually put corporations that operate in the United States, and American workers, in a more competitive position compared to their international peers. 
  • The current US corporate tax rate is 21 percent, but, as recent headlines of dozens of Fortune 500 companies paying zero dollars in federal income taxes last year attest to, there are many ways for major corporations to avoid paying that much.
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  • Many of the most effective ways corporations avoid taxes involve shifting their profits and operations overseas and leaving companies that operate solely in the US at a massive competitive disadvantage. 
  • they automatically get a 50 percent discount on their taxes on all profits booked overseas. American profits are taxed at the full corporate rate of 21 percent, but profits of foreign subsidiaries are only taxed at 10.5 percent.  
  • These multinationals are then able to subtract the taxes they pay to foreign governments from what they owe the IRS. If that amount is more than the 10.5 percent they would typically have to pay, they owe the US government nothing.  
  • Basically, the more equipment and factories a company has overseas, the more tax-free profit it can earn
  • When you combine these loopholes with a cadre of other tax breaks, it allows many companies to completely avoid paying their federal dues. How are domestic companies and mom and pop operations supposed to compete?
  • Most of these advantages became law thanks to the 2017 Trump tax bill, the Tax Cuts and Jobs Act.
Javier E

America's billionaires take center stage in national politics, colliding with populist ... - 0 views

  • The political and economic power wielded by the approximately 750 wealthiest people in America has become a sudden flash point in the 2020 presidential election
  • The populist onslaught has ensnared Facebook founder Mark Zuckerberg and Microsoft co-founder Bill Gates, led to billionaire hand-wringing on cable news, and sparked a panicked discussion among wealthy Americans and their financial advisers about how to prepare for a White House controlled by populist Democrats.
  • With the stock market at an all-time high, the debate about wealth accumulation and inequality has become a top issue in the 2020 campaign
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  • “For the first time ever, we are having a national political conversation about billionaires in American life. And that is because many people are noticing the vast differences in wealth and opportunity,
  • Financial disparities between the rich and everyone else have widened over the past several decades in America, with inequality returning to levels not seen since the 1920s, as the richest 400 Americans now control more wealth than the bottom 60 percent of the wealth distribution
  • The poorest 60 percent of America has seen its share of the national wealth fall from 5.7 percent in 1987 to 2.1 percent in 2014, Zucman found.
  • At least 16 billionaires have in recent months spoken out against what they regard as the danger posed by the populist Democrats, particularly over their proposals to enact a “wealth tax” on vast fortunes, with many expressing concern they will blow the election to Trump by veering too far left.
  • Steyer has proposed his own wealth tax, but Schultz ripped the idea as “ridiculous,” while Bloomberg suggested it was not constitutional and raised the prospect of America turning into Venezuela.
  • Zuckerberg suggested Sanders’s call to abolish billionaires could hurt philanthropies and scientific research by giving the government too much decision-making power. Microsoft co-founder Gates criticized Warren’s wealth tax and mused about its impact on “the incentive system” for making money.
  • David Rubenstein, the billionaire co-founder of the Carlyle Group, told CNBC that a wealth tax would not “solve all of our society’s problems” and raised questions about its practicality. Also appearing on CNBC, billionaire investor Leon Cooperman choked up while discussing the impact a wealth tax could have on his family.
  • America has long had rich people, but economists say the current scale of inequality may be without precedent. The number of billionaires in America swelled to 749 in 2018, a nearly 5 percent jump, and they now hold close to $4 trillion collectively.
  • “The hyper concentration of wealth within the top 0.1 percent is a mortal threat to the American economy and way of life,” Boyle said in an interview. “If you work hard and play by the rules, then you should be able to get ahead. But the recent and unprecedented shift of resources to billionaires threatens this. A wealth tax on billionaires is fair and, indeed, necessary.”
  • “A lot of people in the Wall Street crowd still think the world is top-down,” Wylde said. “They think the people at the top of the pecking order are still making the decisions or driving the debate, as opposed to the new reality of grass-roots mobilization. They don’t realize the way pushback to their criticism goes viral.”
  • Lance Drucker, president and CEO of Drucker Wealth Management, said he has recently heard alarm from many of his millionaire clients over plans like Warren’s to implement a wealth tax on fortunes worth more than $50 million.
  • “Honestly, it’s only been the last month when people started getting worried,” said Drucker in an October interview. “These tax proposals are scaring the bejeezus out of people who have accumulated a lot of wealth.”
  • Some financial planners are urging wealthy clients to transfer millions to their offspring now, before Democrats again raise estate taxes. Attorneys have begun looking at whether a divorce could help the super-rich avoid the wealth tax. And some wealthy people are asking whether they should consider renouncing their U.S. citizenship and moving to Europe or elsewhere abroad ahead of Democrats’ potential tax hikes.
  • he has heard discussions about leaving the country and renouncing citizenship or other legal tax planning moves due to Democrats’ tax plans from several multimillionaires. “As the frustration mounts and tax burdens rise, people will consider it, just the way you have New Yorkers moving to Florida.
kaylynfreeman

Trump Deflects Questions About Taxes, but First Debate Has a New Issue - The New York T... - 0 views

  • The disclosure that President Trump paid little or no federal income taxes for years, including while in the White House
  • While Mr. Trump tried to deflect the news about his taxes, and his Republican allies generally kept their silence, Democrats pounced and former Vice President Joseph R. Biden Jr., the party’s presidential candidate, posted a video noting that the president paid less in income taxes than everyday Americans like teachers, firefighters and nurses.
    • kaylynfreeman
       
      Wow that is horrible. I dont understand why they let him get away with everything. As rich as he is he should not be paying less taxes than teachers thats ridiculous
  • so the tax revelations are not likely to shift the election in any fundamental way,”
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  • Mr. Trump paid no federal income taxes for 11 of the 18 years examined and just $750 in 2016, the year he won the presidency, and $750 in 2017, his first year in office. Mr. Trump wrote off more than $70,000 paid to style his hair during “The Apprentice” and collected $72.9 million in refunds challenged by I.R.S. auditors. He owes hundreds of millions of dollars due in the next four years.
  • Mr. Trump, who unlike other presidents since Watergate has adamantly refused to release his tax returns and fought efforts to obtain them all the way to the Supreme Court, attacked the Times report on Monday on Twitter without actually denying any of its particulars.
    • kaylynfreeman
       
      clearly its not in his favor if hes going that far to hide it
  • The Fake News
    • kaylynfreeman
       
      HE ALWAYS SAYS FAKE NEWS WHEN HES DEFLECTING
  • taking advantage of the tax code is simply “smart” for a business person, while also painting himself as a jobs creator.
    • kaylynfreeman
       
      we talked about how he was a bad business man in class
  • Tim Murtaugh, the campaign spokesman, called the report inaccurate because the president has paid “tens of millions in taxes,” without specifying whether they were federal income taxes or directly denying that there were years he paid none.
  • Fox News.
    • kaylynfreeman
       
      bias towards trump
  • hairstyling expenses
    • kaylynfreeman
       
      IM CRYING HIS TOUPEE LMAO
  • Representative Alexandria Ocasio-Cortez of New York tweeted that she paid thousands of dollars in federal taxes in 2016 and 2017 — when she was still working as a bartender in New York City. “He contributed less to funding our communities than waitresses & undocumented immigrants,” she wrote.
    • kaylynfreeman
       
      This example rly puts it into perspective
  • Mr. Limbaugh said on his show on Monday that Mr. Trump’s penchant for minimizing his taxes was something to be proud of, not scorned. “He’s a master at this,” Mr. Limbaugh said. “These tax returns show that he is a master at using the tax code legally. If Trump had done all of this illegal stuff after all of these years, it would have caught up with him by now.”
    • kaylynfreeman
       
      its the ignorance for me. How is that something to be proud of?
  • “These folks are scraping to make a living and they’re going to wake up to find out this incredible mogul paid $750? I don’t care what his excuses are,” Mr. Kasich told CNN. “It doesn’t pass the smell test. It’s not going to disrupt those people who were for him totally. They’ll still be for him. But it’s those people on the fence.”
  • In his tweets, the president seemed to be as upset about the perception that he is not as wealthy and successful as he claims to be.
  • Fake News
    • kaylynfreeman
       
      he says fake new a lot
  • n fact, as the article noted, Mr. Trump is heavily in debt, and much of what he owes to lenders will have to be paid back in just a few years.
Javier E

America Is Becoming More Liberal - The Atlantic - 0 views

  • The story of the Democratic Party’s journey leftward has two chapters. The first is about the presidency of George W. Bush. Before Bush, unapologetic liberalism was not the Democratic Party’s dominant creed. The party had a strong centrist wing
  • Centrist Democrats believed that Reagan, for all his faults, had gotten some big things right. The Soviet Union had been evil. Taxes had been too high. Excessive regulation had squelched economic growth. The courts had been too permissive of crime. Until Democrats acknowledged these things, the centrists believed, they would neither win the presidency nor deserve to.
  • In the late 1980s and the 1990s, an influential community of Democratic-aligned politicians, strategists, journalists, and wonks believed that critiquing liberalism from the right was morally and politically necessary.
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  • Bush also destroyed centrist Democrats intellectually, by making it impossible for them to credibly critique liberalism from the right.
  • . In the late ’80s and the ’90s, centrist Democrats had also argued that Reagan’s decision to boost defense spending and aid the Afghan mujahideen had helped topple the Soviet empire. But in 2003, when Bush invaded Iraq, he sparked the greatest foreign-policy catastrophe since Vietnam.
  • If the lesson of the Reagan era had been that Democrats should give a Republican president his due, the lesson of the Bush era was that doing so brought disaster.
  • In the Senate, Bush’s 2001 tax cut passed with 12 Democratic votes; the Iraq War was authorized with 29. As the calamitous consequences of these votes became clear, the revolt against them destroyed the Democratic Party’s centrist wing
  • With the Dean campaign came an intellectual revolution inside the Democratic Party. His insurgency helped propel Daily Kos, a group blog dedicated to stiffening the liberal spine. It energized the progressive activist group MoveOn. It also coincided with Paul Krugman’s emergence as America’s most influential liberal columnist and Jon Stewart’s emergence as America’s most influential liberal television personality.
  • All of this has shaped the Clinton campaign’s response to Sanders. At the first Democratic debate, she noted that, unlike him, she favors “rein[ing] in the excesses of capitalism” rather than abandoning it altogether. But the only specific policy difference she highlighted was gun control, on which she attacked him from the left.
  • Whereas the party’s most respected thinkers had once urged Democrats to critique liberal orthodoxy, they now criticized Democrats for not defending that orthodoxy fiercely enough. The presidency of George W. Bush had made Democrats unapologetically liberal, and the presidency of Barack Obama was the most tangible result.
  • that’s only half the story. Because if George W. Bush’s failures pushed the Democratic Party to the left, Barack Obama’s have pushed it even further. If Bush was responsible for the liberal infrastructure that helped elect Obama, Obama has now inadvertently contributed to the creation of two movements—Occupy and Black Lives Matter—dedicated to the proposition that even the liberalism he espouses is not left-wing enough.
  • Todd Gitlin quotes Jeremy Varon, a close observer of Occupy who teaches at the New School for Social Research, as saying, “This is the Obama generation declaring their independence from his administration. We thought his voice was ours. Now we know we have to speak for ourselves.
  • Occupy. The movement may have burned out, but it injected economic inequality into the American political debate
  • The same anger that sparked Occupy—directed not merely at Wall Street but at the Democratic Party elites who coddled it—fueled Bill de Blasio’s election and Elizabeth Warren’s rise to national prominence. And without Occupy, it’s impossible to understand why a curmudgeonly Democratic Socialist from Vermont is seriously challenging Hillary Clinton
  • the Democracy Alliance, the party’s most influential donor club, which includes mega-funders such as George Soros and Tom Steyer, has itself shifted leftward during the Obama years. In 2014, it gave Warren a rapturous welcome when she spoke at the group’s annual winter meeting. Last spring it announced that it was making economic inequality its top priority.
  • By the time Barack Obama defeated Hillary Clinton for the Democratic presidential nomination in 2008, in part because of her support for the Iraq War, the mood inside the party had fundamentally changed.
  • Moreover, the Occupy-Warren-Sanders axis has influenced Clinton’s own economic agenda, which is significantly further left than the one she ran on in 2008. She has called for tougher regulation of the financial industry, mused about raising Social Security taxes on the wealthy (something she opposed in 2008), and criticized the Trans-Pacific Partnership (a trade agreement she once gushed about).
  • “Black Lives Matter developed in the wake of the failure of the Obama administration,” argues the Cornell sociologist Travis Gosa, a co-editor of The Hip Hop & Obama Reader. “Black Lives Matter is the voice of a Millennial generation that’s been sold a ba
  • Had Black Lives Matter existed when Bill Clinton was seeking the presidency, he probably would have run against the group
  • Today, by contrast, the Democratic Establishment has responded to Black Lives Matter much as it responded to Occupy: with applause
  • what’s most remarkable isn’t Hillary Clinton’s move to the left, or the Democratic Party’s. It’s the American public’s willingness to go along.
  • Much of this shift is being driven by a changing mood among whites. Between January and April alone, according to a YouGov poll, the percentage of whites who called deaths like those of Michael Brown and Freddie Gray “isolated incident[s]” dropped 20 points. There’s even been movement within the GOP. From 2014 to 2015, the percentage of Republicans saying America needs to make changes to give blacks an equal chance rose 15 points—more than the percentage increase among Democrats or Independents.
  • Most interesting—because he is the Republican candidate with the keenest sense of how to appeal to the general electorate—has been the approach of Senator Marco Rubio. In August, a Fox News anchor asked him about Black Lives Matter. Instead of condemning the movement, Rubio told the story of an African American friend of his whom police had stopped eight or nine times over the previous 18 months even though he had never broken the law. “This is a problem our nation has to confront,” Rubio declared. Then he talked about young African Americans who get arrested for nonviolent offenses and pushed into plea deals by overworked public defenders. The government, he said, must “look for ways to divert people” from going to jail “so that you don’t get people stigmatized early in life.”
  • Conservative Republicans didn’t talk this way in the ’90s. They didn’t talk this way even in the early Obama years. The fact that Rubio does so now is more evidence that today, unlike in the mid-’60s, the debate about race and justice isn’t moving to the right. It’s moving further left
  • What’s different this time? One difference is that in the 1960s and ’70s, crime exploded, fueling a politics of fear and vengeance. Over the past two decades, by contrast, crime has plummeted. And despite some hyperbolic headlines, there’s no clear evidence that it’s rising significantly again.
  • When the Williams Institute at the UCLA School of Law examined polls, it found that between two-thirds and three-quarters of Americans now support barring discrimination against transgender people.
  • Most Americans, in other words, having decided that discriminating against lesbians and gay men was wrong, have simply extended that view to transgender people via what Flores describes as a “mechanism of attitude generalization.”
  • In polling, Americans typically say they favor smaller government in general while supporting many specific government programs. When Bill Clinton took office in 1993, Americans said they favored “a smaller government providing fewer services” over “a bigger government providing more services” by 37 percentage points. When Obama took power in 2009, the margin was a mere eight points. And despite the president’s many economic interventions, the most recent time Pew asked that question, in September 2014, the margin was exactly the same.
  • This intervention has sparked an angry response on the Republican right, but not among Americans as a whole.
  • On health care, the story is similar: no public backlash. When Obama signed the Affordable Care Act in March 2010, most polls showed Americans opposing it by about eight to 10 points. Today, the margin is almost identical
  • Little has changed on taxes, either, even though Obama allowed some of the tax cuts passed under George W. Bush to expire. The percentage of Americans who say they pay more than their fair share in taxes is about the same as it was in the spring of 2010 (
  • in an era when government has grown more intrusive, African American activists have grown more confrontational, and long-standing assumptions about sexual orientation and gender identity have been toppled, most Americans are not yelling “stop,” as they began doing in the mid-1960s. The biggest reason: We’re not dealing with the same group of Americans.
  • On issue after issue, it is the young who are most pleased with the liberal policy shifts of the Obama era, and most eager for more
  • It is largely because of them that the percentage of Americans who want government to “promote traditional values” is now lower than at any other time since Gallup began asking the question in 1993, and that the percentage calling themselves “socially liberal” now equals the percentage calling themselves “socially conservative” for the first time since Gallup began asking that question in 1999.
  • Millennials are also sustaining support for bigger government. The young may not have a high opinion of the institutions that represent them, but they nonetheless want those institutions to do more
  • They were also 25 points more likely than those 65 and older to approve of Occupy Wall Street and 36 points more favorable toward socialism, which they actually preferred to capitalism, 49 percent to 46 percent. As the Pew report put it, “Millennials, at least so far, hold ‘baked in’ support for a more activist government.
  • The press often depicts American politics as a battle pitting ever more liberal Democrats against ever more conservative Republicans. Among the young, however, that’s inaccurate. Young Democrats may be more liberal than their elders, but so are young Republicans. According to Pew, a clear majority of young Republicans say immigrants strengthen America, half say corporate profits are too high, and almost half say stricter environmental laws are worth the cost—answers that sharply distinguish them from older members of the GOP.
  • Asked how they categorize themselves ideologically, more than two-thirds of Republican Millennials call themselves either “liberal” or “mixed,” while fewer than one-third call themselves “conservative.” Among the oldest Republicans, that breakdown is almost exactly reversed.
  • Millennials are not liberal primarily because they are young. They are liberal because their formative political experiences were the Iraq War and the Great Recession, and because they make up the most secular, most racially diverse, least nationalistic generation in American history. And none of that is likely to change.
  • America is not governed by public-opinion polls, after all. Congressional redistricting, felon disenfranchisement, and the obliteration of campaign-finance laws all help insulate politicians from the views of ordinary people, and generally empower the right. But despite these structural disadvantages, Obama has enacted a more consequential progressive agenda than either of his two Democratic predecessors did
  • If Clinton does win, it’s likely that on domestic policy, she will govern to Obama’s left. (On foreign policy, where there is no powerful left-wing activist movement like Occupy or Black Lives Matter, the political dynamics are very different.) Clinton’s campaign proposals already signal a leftward shift. And people close to her campaign suggest that among her top agenda items would be paid family leave, debt-free college tuition, and universal preschool
  • Clinton will face this reality from her first day in office. And she will face it knowing that because she cannot inspire liberals rhetorically as Obama can, they will be less likely to forgive her heresies on policy. Like Lyndon B. Johnson after John F. Kennedy, she will have to deliver in substance what she cannot deliver in style.
  • it’s likely that any Republican capable of winning the presidency in 2016 would govern to the left of George W. Bush. In the first place, winning at all would require a different coalition. When Bush won the presidency in 2000, very few Millennials could vote. In 2016, by contrast, they will constitute roughly one-third of those who turn out
  • In 2000, African Americans, Hispanics, and Asians constituted 20 percent of voters. In 2016, they will constitute more than 30 percent.
  • even if the 2016 Republican nominee wins 60 percent of the white vote (more than any GOP nominee in the past four decades except Reagan, in 1984, has won), he or she will still need almost 30 percent of the minority vote. Mitt Romney got 17 percent.
  • This need to win the votes of Millennials and minorities, who lean left not just on cultural issues but on economic ones, will shape how any conceivable Republican president campaigns in the general election, and governs once in office.
  • If America’s demographics have changed since the Bush presidency, so has the climate among conservative intellectuals. There is now an influential community of “reformocons”—in some ways comparable to the New Democratic thinkers of the 1980s—who believe Republicans have focused too much on cutting taxes for the wealthy and not enough on addressing the economic anxieties of the middle and working classes.
  • The candidate closest to the reformocons is Rubio, who cites several of them by name in his recent book. He says that partially privatizing Social Security, which Bush ran on in 2000 and 2004, is an idea whose “time has passed.” And unlike Bush, and both subsequent Republican presidential nominees, Rubio is not proposing a major cut in the top income-tax rate. Instead, the centerpiece of his economic plan is an expanded child tax credit, which would be available even to Americans who are so poor that they don’t pay income taxes
  • it’s likely that were he elected, Rubio wouldn’t push through as large, or as regressive, a tax cut as Bush did in 2001 and 2003. Partly, that’s because a younger and more ethnically diverse electorate is less tolerant of such policies. Partly, it’s because Rubio’s administration would likely contain a reformocon faction more interested in cutting taxes for the middle class than for the rich. And partly, it’s because the legacy of the Bush tax cuts themselves would make them harder to replicate
  • A key figure in passing the Bush tax cuts was Federal Reserve Chairman Alan Greenspan, who in 2001 warned that unless Washington lowered tax rates, surpluses might grow too large, thus producing a dangerous “accumulation of private assets by the federal government.” Greenspan’s argument gave the Bush administration crucial intellectual cover. But the idea now looks laughable. And it’s hard to imagine the current Federal Reserve chair, Janet Yellen, endorsing large upper-income tax cuts in 2017.
  • the kind of centrist, Chamber of Commerce–friendly Democrats who helped Bush pass his tax plan in 2001—including Max Baucus, John Breaux, Mary Landrieu, Zell Miller, Max Cleland, Tim Johnson, Blanche Lambert Lincoln—barely exist anymore. The Democrats’ shift left over the past decade and a half means that a President Rubio would encounter more militant opposition than Bush did in 2001
  • the next Republican president won’t be able to return the nation to the pre-Obama era.
  • That’s what happened when Dwight Eisenhower followed Franklin D. Roosevelt and Harry Truman. Ike moderated the growth in government expansion that had begun in the 1930s, but he didn’t return American politics to the 1920s, when the GOP opposed any federal welfare state at all. He in essence ratified the New Deal
  • It’s also what happened when Bill Clinton followed Ronald Reagan and George H. W. Bush. By passing punitive anticrime laws, repealing restrictions on banks, signing NAFTA, cutting government spending to balance the budget, reforming welfare, and declaring that the “era of big government is over,” Clinton acknowledged that even a Democratic president could not revive the full-throated liberalism of the 1960s and ’70s. He ratified Reaganism.
  • Barack Obama sought the presidency hoping to be the Democrats’ Reagan: a president who changed America’s ideological trajectory. And he has changed it. He has pushed the political agenda as dramatically to the left as Reagan pushed it to the right, and, as under Reagan, the public has acquiesced more than it has rebelled.
Javier E

Trump Tax Plan Benefits Wealthy, Including Trump - The New York Times - 0 views

  • It’s a venerable principle that lower tax rates encourage corporate investment. But a study of a 2003 cut in the tax rate on corporate dividends found no discernible impact on investment. The finding would not have surprised Mr. Bush’s Treasury secretary at the time, Paul O’Neill, who was fired for opposing the plan. “You find somebody who says, ‘I do more R & D because I get a tax credit for it,’ you’ll find a fool,” Mr. O’Neill, a former Alcoa chairman, said at the time.
  • Mr. Trump’s plan also continues a long-term march away from progressive taxation. The federal income tax is the centerpiece of a longstanding bipartisan consensus that wealthy Americans should pay an outsize share of the cost of government.
  • But successive rounds of tax cuts have eroded that premise
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  • In 1980, the wealthiest Americans paid 59 percent of their income in taxes while the middle 20 percent of Americans paid 24.5 percent. After the Bush tax cuts, the wealthiest Americans paid 34.7 percent of their income in taxes, while Americans in the middle income brackets paid 16.1 percent.
  • Under President Barack Obama, Congress increased taxation of upper-income households. Mr. Trump is seeking to resume the long-term trend toward flattening the curve. Upper-income households would get large tax cuts; lower-income households would get none.
  • The administration said Wednesday that it was committed “to ensure that the reformed tax code is at least as progressive as the existing tax code.” That language, however, applies only to personal income taxes. The proposed reduction of business taxes and the elimination of the estate tax would both disproportionately benefit wealthy Americans.
Javier E

Republican tax cuts will hurt Americans. And Democrats will pay the price | Bruce Bartl... - 0 views

  • The theory was laid out almost 30 years ago by two Swedish economists, Torsten Persson and Lars EO Svensson.
  • they explained why a stubborn conservative legislator would intentionally run a big budget deficit.
  • It has to do with what economists call time inconsistency – the consequences of actions taken today may not appear until the future, when a different political party will be in power. Thus the credit or blame will accrue to that party rather than the one that implemented the policy, because voters tend to attribute whatever is happening today to the party in power today even if that party had nothing to do with it.
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  • Thus Barack Obama got blamed for a recession and resulting budget deficits he had nothing to do with originating.
  • Of course, another reason for those deficits is that Republicans systematically decimated the federal government’s revenue-raising capacity during the George W Bush administration with one huge tax cut after another
  • The payoff for this orgy of tax-cutting came when Obama took office. All of a sudden, Republicans noticed that there were large deficits and insisted that Obama do something about them right this minute! They even made the nonsensical argument that spending cuts would stimulate growth by reducing the burden of government.
  • Grover Norquist, planned it this way. I doubt he has ever read Persson and Svensson, but understood intuitively that the tax pledge was guaranteed to ratchet down the size of government forever. It wouldn’t happen all at once, but over a period of decades. The history of fiscal policy since the pledge was originated in 1988 is, sadly, proof that it has worked exactly as he hoped.
  • I think Republicans remember better than Democrats the lesson of 1993 as well. Bill Clinton was elected in 1992 on an activist agenda. But once in office, he was persuaded to reverse course and put all his efforts into deficit reduction.
  • Its key element was a significant tax increase that every Republican in Congress voted against. They said it would crash the economy, but was instead followed by an economic boom. Unfortunately, the boom didn’t become apparent until after the 1994 election in which Democrats took heavy losses – in large part because of the tax increase. Republicans got control of both houses of Congress for the first time in 40 years.
  • I believe that the same cycle will rerun over the next few years. Should Democrats get control of the House and/or Senate next year, Trump and his party will insist that deficit reduction be the only order of business. Automatic spending cuts resulting directly from the tax cut will start to bite, hurting the poor and middle class primarily, according to the Congressional Budget Office, and making them forget that they resulted from a huge tax give-away to the wealthy that increased the deficit by $1.5tn. Democrats will get much of the blame due to time-inconsistency.
  • Keep in mind that no matter how big the deficit gets from the tax cut Republicans are rushing to enact, none of them will ever vote to undo those cuts or raise taxes except, perhaps, in ways that further burden the poor, such as raising the gasoline tax. That is because they all signed a tax pledge promising never to raise taxes. Therefore, any deficit reduction will either consist solely of spending cuts or pass with only Democratic votes, as was the case in 1993.
  • Obama’s hands were tied by the deficit hawks in his own party as well and prevented from offering an economic stimulus adequate to offset the loss of aggregate demand resulting from the great recession that began in December 2007 on Bush’s watch. Obama even joined with Republicans to slash spending in the 2011 budget deal and put in place budget controls that made it virtually impossible to pursue any positive Democratic initiatives for the balance of his presidency. No wonder Trump won.
  • The Democrats’ only hope is to defeat the tax cut in its entirety and not be seduced by Republican efforts to tilt it more in favor of the middle class. Once the deficit is programmed to increase by another $1.5tn the Republican trap will be set and Democrats will again be on the path to cleaning up their fiscal mess. Just say no to tax cuts is my advice.
anonymous

The GOP tax plan, explained in simplest possible terms - The Washington Post - 0 views

  • The plan will likely add to America's $20 trillion deb
  • The plan will likely add to America's $20 trillion debt.
  • There are almost no loopholes eliminated.
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  • White House vows poor people won't have to pay more than they do now,
  • Businesses (both small and large) get major tax cuts.
  • Most people will pay lower taxes
  • wealthy get a tax cut. They will pay only 35 percent on their income taxes (down from 39.6 percent). At the moment, this rate applies to any income above about $418,000.
  • tax break for the rich is the elimination of the estate tax
  • The Alternative Minimum Tax (AMT) would go away under the plan.
  • a married couple earning $24,000 or less or an individual earning $12,000 or less won't pay any taxes.
  • The poor should not end up paying more than they do now.
  • currently applies mainly to individuals earning more than $130,000 and married couples earning more than $160,00.
  • America will have just three tax rates: 35, 25 and 12 percent
  • at the moment is 35 percent
  • America's large corporations will get a big tax cut.
  • The Trump plan slashes the rate to 20 percent
  • this plan will unleash growth of 3 percent — or more
  •  
    In simpler terms, the new tax plan explained. Relates to the French Revolution taxes?
leilamulveny

Opinion | How Biden Funds His Next Bill: Shrink the $7.5 Trillion Tax Gap - The New Yor... - 0 views

  • With the passage of a deficit-financed $1.9 trillion relief bill just hours away, Democrats in Congress may soon pivot to new agenda items, including President Biden’s Build Back Better plan for infrastructure and other critical investments. And those lawmakers will inevitably face intense pressure from fiscal moderates to include tax “pay fors” in spending legislation. One of the best ways to raise plenty of revenue — and help honest taxpayers — is to effectively battle tax cheats. To do that, though, Mr. Biden and Congress must seize the chance to revamp and restore the federal government’s own infrastructure: the Internal Revenue Service.
  • That tax gap is projected to total about $7.5 trillion over this decade. Meanwhile, the I.R.S. answered fewer than a quarter of its phone calls from people seeking help with their taxes.
  • . It would help the overwhelming majority of Americans who want to pay whatever they owe. It would help honest businesses better thrive and compete. And restaffing the I.R.S. through restored funding would help fight corruption and strengthen the rule of law.
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  • Perhaps unsurprisingly, the wealthiest are the prime beneficiaries of the status quo. Estimates suggest that the top 1 percent of filers account for at least 28 percent and as much as 70 percent of the tax gap. The wealthiest households and largest businesses often use a complex maze of financial arrangements and offshore entities that make it incredibly hard and time-consuming for the I.R.S. to untangle what taxes are owed but not paid.
  • A Treasury Inspector General for Tax Administration report published last year found the I.R.S. had failed to follow up with more than 369,000 high-income households that simply did not file a tax return in prior years.
  • Multinational corporations being audited by the I.R.S. have shown they can outgun and outlast it, stalling their cases as long as possible to run out the clock on the statute of limitations. The number of cases brought by the agency’s criminal division has dropped by about a quarter since 2010. Many recent high-profile prosecutions for tax evasion — like those of Paul Manafort, Michael Cohen and Michael Avenatti — occurred only because federal investigators were investigating them for other reasons.
  • An increase in I.R.S. funding to reverse this decade of damage would also make good fiscal sense. Natasha Sarin, an assistant professor at the University of Pennsylvania law school, and Larry Summers, the Harvard economist, have a proposal to restore about $100 billion to the agency’s budget over the next 10 years.
  • For example, because the I.R.S. gets information on wage and salary income from workers’ tax returns and their employers — and because their taxes are often automatically withheld — compliance on this type of income is above 95 percent
  • Lawmakers have the opportunity to remedy that this year and finally secure the 21st-century tools and resources the I.R.S. needs. Because reforming the I.R.S. is compatible with the budget process that lets spending bills pass in the Senate with a simple majority, there’s little excuse for inaction.
Javier E

Opinion | Trump's Corporate Tax Cut Was a Flop - The New York Times - 0 views

  • the way to think about all this is to say that naïve calculations of the effect of tax cuts on business investment have to be “geared down” in multiple ways. Debt-financed investment shouldn’t be affected; the cost of capital has a limited effect on investment in any case because of short asset lives; and a lot of any tax cut goes to monopolists whose behavior won’t be affected. Even with all of this, there should be some effect from lower taxes, but it could easily be small enough to vanish in the statistical noise.
  • But why did anyone ever believe that corporate tax cuts would do great things for the economy?
  • The big argument for cutting corporate taxes has long been that if we don’t, corporations will move capital and jobs to lower-tax nations. And a casual look at the data suggests that this actually happens. U.S. corporations have a lot of overseas assets, and seem to favor countries with low tax rates.
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  • What we’ve learned over the past 7 or 8 years, however, is that we’re mainly looking at accounting tricks rather than real capital flight to avoid taxes
  • Another way to make the point is to note that most — most! — overseas profits reported by U.S. corporations are in tiny tax havens that can’t realistically be major profit centers. Here’s a chart from the Biden administration’s fact sheet on its tax plan:
  • So one way to think about the failure of the Trump tax cut is that it didn’t reverse capital flight because the capital flight never happened in the first place. In effect, the U.S. government gave up hundreds of billions of dollars to fix a nonexistent problem.
  • Now the Biden administration wants to go after the real problem, which was always tax avoidance, not loss of jobs to foreigners. Will they manage to pass the necessary legislation? We’ll just have to wait and see.
anonymous

House Approves Budget Plan, Paving Way for Tax Action - WSJ - 0 views

  • The House adopted a budget Thursday that sets the stage for a rewrite of the U.S. tax system
  • The final vote on the fiscal 2018 budget was 216-212,
  • tax bill, which they insist will happen by Thanksgiving.
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  • sharply lower tax rates for individuals, corporations and other businesses while at the same time repealing or limiting enough tax breaks so that the measure doesn’t raise the projected federal deficit by a total of more than $1.5 trillion over the next decade.
  • “That means more jobs, fairer taxes, bigger paychecks for Americans.”
  • The House Ways and Means Committee plans to release a tax bill next Wednesday, Nov. 1, and begin committee action Nov. 6
  • drop the corporate tax rate to 20% from 35%, set a 25% rate on businesses that pay through their owners’ individual tax returns, repeal the estate tax and make tax filing simpler.
  •  
    This article describes the current Tax Action plan which I thought complimented the rise of a money economy in the current lessons for ehem.
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