Revenue Act of 1921

(noun)

The United States Revenue Act of 1921 was the first Republican tax reduction following the party's landslide victory in the 1920 presidential elections.

Related Terms

  • Fordney-McCumber Tariff Act
  • Conference of Unemployment

Examples of Revenue Act of 1921 in the following topics:

  • Harding's Policies

    • Harding assumed office in March 1921 while the nation was in the midst of a postwar economic decline, known as the Depression of 1920–21.
    • Harding signed the Revenue Act of 1921, which gave large deductions in the amount of taxes the wealthiest Americans had to pay.
    • Revenues to the federal treasury increased substantially in this period.
    • Considered to be one of his greatest domestic achievements, Harding also signed the Budget and Accounting Act of 1921, which established the framework for the modern federal budget.
    • In what he proclaimed to be the age of the "motor car," Harding signed the Federal Highway Act of 1921, which defined the Federal Aid Road program to develop an immense national highway system.
  • The Wilson Administration

    • During his presidency (1913–1921), Wilson passed a Progressive Democratic legislative agenda and played a major role in World War I.
    • This included the Federal Reserve Act, the Underwood Tariff, the Federal Trade Commission, the Clayton Antitrust Act, and the Adamson Act.
    • In late 1913, Wilson secured passage of the Federal Reserve Act, an Act of Congress that created the Federal Reserve System, the central banking system of the U.S., and granted it the legal authority to issue currency.
    • Another landmark of his first term was his effective mobilization of public opinion behind tariff changes, beginning in 1913 with passage of the Revenue Act, better known as the Underwood Tariff, in which revenue lost by lower tariffs was replaced by a new federal income tax.
    • In 1916, under threat of a national railroad strike, Wilson approved the Adamson Act.
  • Federalism Today

    • While banks had long been incorporated and regulated by the states, the National Bank Acts of 1863 and 1864 saw Congress establish a network of national banks that had their reserve requirements set by officials in Washington.
    • As early as 1913, there was talk of regulating stock exchanges, and the Capital Issues Committee formed to control access to credit during World War I recommended federal regulation of all stock issues and exchanges shortly before it ceased operating in 1921.
    • With the Morrill Land-Grant Acts Congress used land sale revenues to make grants to the states for colleges during the Civil War on the theory that land sale revenues could be devoted to subjects beyond those listed in Article I Section 8 of the Constitution.
    • On several occasions during the 1880s, one house of Congress or the other passed bills providing land sale revenues to the states for the purpose of aiding primary schools.
    • Disaster relief for areas affected by floods or crop failures dated from 1874, and these appropriations began to multiply during the administration of Woodrow Wilson (1913-1921).
  • The Tariff

    • The United States Revenue Act of 1913 re-imposed the federal income tax, and lowered basic tariff rates from 40% to 25%.
    • The United States Revenue Act of 1913 (also known as the Tariff Act, Underwood Tariff or Underwood-Simmons Act) re-imposed the federal income tax following the ratification of the Sixteenth Amendment.
    • Underwood of Alabama guided the Revenue Act of 1913 through the House (where it passed, 281 to 139) and the Senate (where it passed, 44 to 37).
    • The Act also provided for the re-institution of a federal income tax as a means of compensating for anticipated lost revenue due to the reduction of tariff duties.
    • Within a few years after the Revenue Act was implemented, the federal income tax replaced tariffs as the chief source of revenue for the government.
  • The Roaring Twenties

    • When Harding took office in 1921, the national economy was in the depths of a depression, with an unemployment rate of 20% and runaway inflation.
    • He subsequently signed the Emergency Tariff of 1921 and the Fordney-McCumber Tariff of 1922 to ease the economic suffering of domestic producers such as farmers.
    • It was believed a heavy tax burden on the rich would slow the economy and reduce tax revenues.
    • Harlem also played a key role in the development of dance styles and the popularity of dance clubs.
    • Constitution banning alcohol was implemented through the Volstead Act, which went into effect on January 17, 1920.
  • The Cost of Maintaining the Government

    • The Office of Management and Budget (OMB) is a cabinet-level office, the largest within the Executive Office of the President of the United States (EOP).
    • The Budget and Accounting Act of 1921, which was signed into law by President Warren G.
    • Harding, established The Bureau of the Budget, OMB's predecessor, as a part of the Department of the Treasury.
    • CBO computes a current law baseline budget projection that is intended to estimate what federal spending and revenues would be in the absence of new legislation for the current fiscal year and for the coming 10 fiscal years.
    • Then, through subsequent acts by Congress, the Appropriations Committee of the House then appropriates budget authority.
  • Postwar Isolationism

    • Soon after, the US–German Peace Treaty of 1921 was signed in Berlin, the US–Austrian Peace Treaty of 1921 was signed in Vienna, and the US–Hungarian Peace Treaty of 1921 was signed in Budapest.
    • Congress passed a number of so-called neutrality acts in the 1930s, fascism in Europe gained massive influence and the continent was on the brink of war.
    • The first came in 1939 with the passage of the Fourth Neutrality Act, which permitted the United States to trade arms with belligerent nations, as long as these nations came to America to retrieve the arms, and pay for them in cash.
    • The second phase was the Lend-Lease Act of early 1941.
    • The act allowed the President "to lend, lease, sell, or barter arms, ammunition, food, or any 'defense article' or any 'defense information' to 'the government of any country whose defense the President deems vital to the defense of the United States.'"
  • The Townshend Acts

    • The purpose of the Townshend Acts was to raise revenue in the colonies to pay the salaries of governors and judges so that they would be independent of colonial rule.
    • The first of the Townshend Acts, sometimes simply known as the Townshend Act, was the Revenue Act of 1767.
    • This act represented a new approach for generating tax revenue in the American colonies after the repeal of the Stamp Act in 1766.
    • The original stated purpose of the Revenue Act and the following Townshend Acts was to raise revenue to pay the cost of maintaining an army in North America.
    • On March 5, 1770—the same day as the Boston Massacre—Lord North, the new Prime Minister, presented a motion in the House of Commons that called for partial repeal of the Townshend Revenue Act.
  • Wilsonian Progressivism

    • Underwood of Alabama guided the Revenue Act of 1913 through the House (where it passed, 281 to 139) and the Senate (where it passed, 44 to 37).
    • Contemporaries considered the Revenue Act a political triumph for Wilson.
    • The Act also provided for the re-institution of a federal income tax as a means of compensating for anticipated lost revenue due to the reduction of tariff duties.
    • That obstacle, however, was removed by the ratification of the Sixteenth Amendment on February 3, 1913, and the Revenue Act.
    • Within a few years after the Revenue Act was implemented, the federal income tax replaced tariffs as the chief source of revenue for the government.
  • Social and Legal Considerations

    • All commercial acts may be deceptive, not just advertising, but noncommercial activity such as advertising for political candidates is not subject to prosecution under the FTC Act.
    • The goal is prevention rather than punishment, reflecting the purpose of civil law in setting things right rather than that of criminal law.
    • The typical sanction is to order the advertiser to stop its illegal acts, or to include disclosure of additional information that serves to avoid the chance of deception.
    • The UCL "borrows heavily from section 5 of the Federal Trade Commission Act" but has developed its own body of case law.
    • From 1921 until the mid-1970s, Listerine was also marketed as a preventive and remedy for colds and sore throats.
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