Wilson's New Freedom Reforms for kids:
Underwood Tariff aka the Revenue Act of 1913
President Woodrow
Wilson, like his predecessors Theodore Roosevelt and William Taft,
was a firm supporter of the
Progressive Movement and
Progressive reforms. His New Freedom polices included the
passing of the federal law known as the Underwood Tariff aka the
Revenue Act of 1913.
Underwood Tariff: What was the Purpose of the
Underwood Tariff aka the Revenue Act of 1913?
The purpose of the Underwood Tariff
was two-fold: ● To reduce the average
tariff on imported goods
●
To compensate for lost revenue on tariffs, a rider to the act
created a small, graduated income tax. The Underwood Tariff aka
the Revenue Act of 1913 therefore re-imposed the federal Income
Tax
Who sponsored the
Underwood Tariff aka the Revenue Act of 1913?
The Underwood Tariff was
sponsored and named for the progressive
Alabama Representative, Oscar Underwood.
Underwood Tariff aka the Revenue Act of 1913: The Tariff Reduction
What is a tariff?
A Tariff is a tax
placed on goods that are imported from foreign countries.
The Underwood Tariff, aka the Revenue Act of 1913, lowered basic
tariff rates from 40% to 26%, well below the
1909 Payne-Aldrich Tariff Act which had been President Taft's
derisive compromise on tariffs. Many items were added to the free
list, including iron, steel, woolens, farm machinery and many raw
materials, groceries and removed the duties from more than a hundred
other items. The purpose of the tariff reductions was to
make manufacturers more efficient and provide consumers with
competitive pricing.
Effect of the Tariff Reduction
The effect of the reduced tariffs encouraged the
import of foreign materials and manufactured goods, and prices of
goods came down. It was a genuine attempt to lower the cost of
living. However the effect of reduced tariffs on prices and
foreign trade was short-lived due to the outbreak of World War I
(1914 -1918) which curtailed imports.
Underwood Tariff aka the Revenue Act of 1913: The 16th
Amendment and Income Tax
In 1894 the United States Congress had enacted a flat
rate Federal income tax but this had been ruled unconstitutional by
the U.S. Supreme Court because it was a direct tax not apportioned
according to the population of each state.
The
16th Amendment, which authorized Congress to collect income
taxes, was ratified just a few weeks before the inauguration of
Woodrow Wilson. This amendment to the Constitution enabled Wilson to
enact a new tax on individual income. He took the opportunity to do
so with the Underwood Tariff. The Revenue Act of 1913 re-imposed the
federal Income Tax without regard to the population of each State.
(A Corporation Tax had already been included in the Payne-Aldrich
Tariff law).
Effect of the federal Income Tax
The effect of the Underwood Tariff, aka the Revenue
Act of 1913, on federal Income Tax was as follows:
● Incomes less than $4000
per year were exempt by the act (this ensured that nearly all
factory workers and farmers were not required to pay the taxes)
● Those earning more than
$4000, but less than $20,000, paid just 1% income tax
● There was then a gradual
increase in rates. The highest tax was just 6% on earnings
exceeding $500,000.
Underwood Tariff aka
Revenue Act of 1913
The info about the Underwood Tariff,
aka Revenue Act of 1913, provides interesting facts and
important information about this important law that
was passed during the presidency of the 28th President of the United States of America.
Underwood Tariff aka Revenue Act of 1913 - President Woodrow Wilson Video
The article on the Underwood Tariff provides detailed facts and a summary of one of the important
progressive reforms and federal laws passed during his presidential term in office. The following
Woodrow Wilson video will
give you additional important facts and dates about the political events experienced by the 28th American President whose presidency spanned from March 4, 1913 to March 4, 1921.
Underwood Tariff aka Revenue Act of
1913
●
Interesting Facts about Underwood Tariff for kids and schools
●
Underwood Tariff, Revenue Act of 1913 for kids
●
The Underwood Tariff, a major
event in US history
●
Woodrow Wilson Presidency from March 4, 1913 to March 4, 1921
●
Fast, fun facts about the Underwood Tariff, Revenue Act of 1913
●
Progressive laws and reforms of President Woodrow Wilson
● Woodrow Wilson Presidency and
Underwood Tariff, Revenue Act of 1913, for schools,
homework, kids and children |