#TBT: Woodrow Wilson Is The First President To Tax The Rich

     Woodrow Wilson was the first president to introduce a comprehensive domestic agenda at the very beginning of his administration, a "New Freedom" involving bank reform, tariff and tax overhaul, labor and farming rights, and environmental protection. 

     In every one of these facets, Wilson succeeded. Perhaps the one most relevant to this day is the way he overhauled the American government's income. Until that point, America had been run by tariffs, or fees on imports and exports. The income tax had been established by constitutional amendment in 1912, and Wilson took advantage of this the day he took office.

     Signed on October 3rd, 1913, the Revenue Act of 1913, also called the "Underwood Tariff," cut the tariff rate from 40 percent to 26, a 35 percent decrease. To make up for this, Wilson imposed a direct tax of one percent on the wealthiest three percent of Americans. 110 years later, the law is still the primary basis for government revenue.

     So, why post on January 20th if the law was signed on October 3rd? January 20th is inauguration day every four years, and this merely serves as a reminder of what taxing the wealthy can accomplish. Ronald Reagan put America on the path of fiscal suicide by making a permanent solution out of a temporary problem, exploding the deficit with a 75 percent tax cut on the wealthy and corporations over the past 50 years. The 1950s was an era of good feelings all its own because this reliable revenue was combined with peace, ensuring Americans the basic rights to healthcare and education that have been neglected ever since. The wealthy could solve all of America's problems if they wanted to and still have more than enough to live in style; they simply prefer to hoard more money than anyone could spend in a lifetime. The middle class keeps money in motion, and taxing the wealthy is what we need to achieve a healthy middle class.