Legacies Project by Caleb Chairez

Income and Wealth Taxes (1934-1941)

calebchairez — 2024-05-14 18:03:08 UTC

President Franklin D. Roosevelt's New Deal programs forced an increase in taxes to generate needed funds. The Revenue Act of 1935 introduced the Wealth Tax, a new progressive tax that took up to 75 percent of the highest incomes. Many wealthy people used loopholes in the tax code. The Revenue Act of 1937 cracked down on tax evasion by revising tax laws and regulations.

The cost of World War II exceeded federal tax revenues. The Revenue Act of 1942 proposed the Victory Tax, the broadest and most progressive tax in American history. To ease taxpayers' burden of paying a lump sum from this mass tax, and to create a regular flow of revenue into the Treasury, the government required employers to withhold money from employees' paychecks. By the end of the war in 1945, about 90 percent of American workers submitted income tax forms.

the Social Security Act of 1935

calebchairez — 2024-05-14 18:08:44 UTC

Out of all these programs, the Social Security Act of 1935 has had the longest-lasting effect on America. It established a national system of pensions, unemployment insurance, and aid to mothers with children through the creation of the Social Security Administration (SSA). Social Security continues to provide crucial financial support to retirees, disabled individuals, and families, making it one of the most enduring and impactful social welfare programs in American history.

the National Industrial Recovery Act (NIRA) of 1933

calebchairez — 2024-05-14 18:15:19 UTC

Following the Social Security Act, the National Industrial Recovery Act (NIRA) of 1933 had a significant impact on America. The NIRA created the National Recovery Administration (NRA), which legalized industry collaboration for price controls and collective bargaining for labor. Although parts of the NIRA were later declared unconstitutional by the Supreme Court, its emphasis on labor rights and industrial regulation laid the groundwork for future labor laws and paved the way for increased government intervention in the economy, shaping America's approach to economic policy for decades to come.