Two area lawmakers launched surveys recently about the repayment of school funding that was delayed to help an immediate problem with the state budget.
If you look closely, you can see the results depend largely on how the question was asked ...and who did the asking.
GOP Rep. Glenn Gruenhagen's results? "A 62-percent majority says our first priority should be to repay shifted K-12 education funds.
Nearly two-thirds (65 percent) indicate the best way to begin repaying delayed K-12 education funding is to reduce spending in order to grow the surplus."
DFL Sen. Kathy Sheran's results? Of the respondents to her survey, 51% said "The state should use a phased-in approach that would pay back the shift over the course of four or five years." While 33% said "Follow state law and pay back the shift as soon as the state has enough funds in reserve, which could take 5-10 years." And 5% said "Never pay the shift back. It’s the price schools had to pay to fix the 2011 budget deficit."
Monday, April 16, 2012
Seriously, who doesn't need an ID?
Started out my Monday morning with a call from my occasional conscience tweaker, Mr. D, a rural businessman.
"Jimmy, can you tell me something? What groups actually need IDs?"
His dander was up on the constitutional amendment coming up for a November vote that require a government-issued ID be presented to cast a ballot in elections. My dander was up, too, because I don't like being called Jimmy.
I thought for a moment. "You mean actually have to live without them? I'm not sure."
"Well, you need an ID to cash a check, to collect Social Security, to buy a house..." He went on about military service, getting food stamps, boarding a plane, buying a drink, driving a car, getting a loan.
He surmised that it would be someone who is below the age of 62, homeless, self-employed, used cash and didn't drive a car. "And so the requirement would hardly affect a lot of people."
"What about the Amish," I asked?
"Well, that's another group I suppose."
"And what about those who live off the land, you know, shunning all the conveniences of modern life?"
"Yeah, there are those self-sustainers who probably ride a horse into town."
But even so, his argument went, are we really inconveniencing a large number of people to get an ID - and a free one at that - to vote.
"Look at the problems now. You have students who, if they wanted to, can vote twice - once where they're going to school and again at their hometown or even from another state because no one is checking. Or nursing home residents who are there temporarily." And, he went on, "I just never liked the idea that anyone could walk in and have a buddy vouch for him" as being a resident of the precinct.
Well, actually he can vouch for up to 15 people and if it's a residential home, one person can vouch for an unlimited number of residents staying there.
"You're making my case for me," he said.
"I'll tell you what I'll do," I offered. "I'll post this column and see if there are any other groups of people who would be left out if IDs were required and didn't already have them."
And there we have it. So, any suggestions?
"Jimmy, can you tell me something? What groups actually need IDs?"
His dander was up on the constitutional amendment coming up for a November vote that require a government-issued ID be presented to cast a ballot in elections. My dander was up, too, because I don't like being called Jimmy.
I thought for a moment. "You mean actually have to live without them? I'm not sure."
"Well, you need an ID to cash a check, to collect Social Security, to buy a house..." He went on about military service, getting food stamps, boarding a plane, buying a drink, driving a car, getting a loan.
He surmised that it would be someone who is below the age of 62, homeless, self-employed, used cash and didn't drive a car. "And so the requirement would hardly affect a lot of people."
"What about the Amish," I asked?
"Well, that's another group I suppose."
"And what about those who live off the land, you know, shunning all the conveniences of modern life?"
"Yeah, there are those self-sustainers who probably ride a horse into town."
But even so, his argument went, are we really inconveniencing a large number of people to get an ID - and a free one at that - to vote.
"Look at the problems now. You have students who, if they wanted to, can vote twice - once where they're going to school and again at their hometown or even from another state because no one is checking. Or nursing home residents who are there temporarily." And, he went on, "I just never liked the idea that anyone could walk in and have a buddy vouch for him" as being a resident of the precinct.
Well, actually he can vouch for up to 15 people and if it's a residential home, one person can vouch for an unlimited number of residents staying there.
"You're making my case for me," he said.
"I'll tell you what I'll do," I offered. "I'll post this column and see if there are any other groups of people who would be left out if IDs were required and didn't already have them."
And there we have it. So, any suggestions?
Sunday, January 22, 2012
Free Press adopts digital subscription
MANKATO — After months of work, The Free Press website will undergo an important change. By the end of the month, we will offer digital subscriptions to mankatofree press.com that will allow you to view an unlimited number of our website’s articles, blogs, photos and more.
Without the digital subscription, you still will be able to access 10 pages each month. After that, you will be asked to become a digital subscriber.
With some dedicated experimentation and resources, we have found over the last year that we have three distinct audiences: the online reader, the e-edition (or PDF) reader and the print edition reader who values hard copy and home delivery.
We have been upgrading our website to such a point where it now has become a stand-alone product with features such as our CoverItLive reporting of sports and news events, more photos, extended police logs and court documents, breaking news, video reports, blogs, polls, Mankato Magazine, Minnesota Valley Business magazine and other interactive features.
We have developed methods by which we could present the news in ways the print edition could not. We are now at the point where we can offer all the extended features at a fair price to cover the expense of gathering and presenting the news in its various forms.
Subscribers to The Free Press can get full access to our website for $1 per month, and for nonsubscribers the price is $4.99 per month.
We value our print subscribers as members of the Free Press Media Group and they will enjoy a greatly discounted rate for unlimited access to mankatofreepress.com. And some features will continue to have unlimited access, including our obituaries, classifieds, weddings, engagements and celebrations.
The mankatofreepress.com is unquestionably the region’s No. 1 local news website, drawing more viewers than any other local media company. Last year, we had 17.2 million page views and nearly 2 million unique users with stories that generated enough interest to go “viral” or get shared by thousands more readers. Nearly 70 percent of those who came to mankatofreepress.com were returning visitors.
We are committed to changing and innovating to provide you with the local news you need, when you want it and the way you want it.
Without the digital subscription, you still will be able to access 10 pages each month. After that, you will be asked to become a digital subscriber.
With some dedicated experimentation and resources, we have found over the last year that we have three distinct audiences: the online reader, the e-edition (or PDF) reader and the print edition reader who values hard copy and home delivery.
We have been upgrading our website to such a point where it now has become a stand-alone product with features such as our CoverItLive reporting of sports and news events, more photos, extended police logs and court documents, breaking news, video reports, blogs, polls, Mankato Magazine, Minnesota Valley Business magazine and other interactive features.
We have developed methods by which we could present the news in ways the print edition could not. We are now at the point where we can offer all the extended features at a fair price to cover the expense of gathering and presenting the news in its various forms.
Subscribers to The Free Press can get full access to our website for $1 per month, and for nonsubscribers the price is $4.99 per month.
We value our print subscribers as members of the Free Press Media Group and they will enjoy a greatly discounted rate for unlimited access to mankatofreepress.com. And some features will continue to have unlimited access, including our obituaries, classifieds, weddings, engagements and celebrations.
The mankatofreepress.com is unquestionably the region’s No. 1 local news website, drawing more viewers than any other local media company. Last year, we had 17.2 million page views and nearly 2 million unique users with stories that generated enough interest to go “viral” or get shared by thousands more readers. Nearly 70 percent of those who came to mankatofreepress.com were returning visitors.
We are committed to changing and innovating to provide you with the local news you need, when you want it and the way you want it.
Thursday, December 1, 2011
Minnesota tax reform: It's not all give and takes
Recently the Minnesota Commissioner of Revenue Myron Frans met with about 35 business people from the Mankato area for a "listening session" on tax reform.
His charge from Governor Mark Dayton was to take some time in the next year to develop proposals to be presented outside of an election cycle which may polarize positions rather than have a productive discussion.
But rather than an objective look at tax structure, it was clear from the presentation that a bulls-eye is still on higher income Minnesotans.
Frans presented slides entitled "While income is increasingly concentrated at the top ... the Top 10% now has 50% share of income" and "The tax burden is being shifted to those with the least ability to pay....The middle class is paying a larger share of Minnesota taxes."
Frans' conclusion: The top 10% of income earners are not "paying their fair share."
This has been a DFL refrain for several years now and it was unfortunate that he led the discussion to business people who may have a different interpretation of the data.
But, Frans did point out that over time, we have shifted a greater share of state revenue coming from property tax at the expense of sales tax. And for the individual income tax, the state has dramatically increased the number of adjustments and credits favoring special interests.
So the question posed by Frans and the state legislators in attendance to business people was "What are you willing to give up?"
The response, instead, was "Let's talk about spending first before we talk about shifting sources of revenue." In other words, have we had a serious discussion about the role of government, prioritizing those roles and determining how to fund those essential services. Afterwards, we can debate if we want other services funded and how.
Easier said then done and, frankly, not in the purview of the commissioner's mandate from the governor. So, let me go back to the charge of "what are we willing to give up?"
Here's a suggested list I gleaned from discussions with people in the community and from tax reform advocates on "what to change."
--Remove sales tax exemption on food, clothing and services. In exchange, lower the rate. Arguments against: "Increasing" taxes on food and clothing is regressive. Response: While it may be regressive, there are elements that suggest wealthier pay more overall for higher priced goods they buy...and of course, a sales tax is a "choice" tax. A T-bone steak will bring in more revenue than the same tax rate on a bag of Cheetos.
--To support reimbursement of health care costs for the needy, increase taxes on tobacco and alcohol. Arguments against: Again, it is a regressive tax. But also unreliable since people may cut their consumption and thereby we have less revenue. Response: Well then it improves the collective health of users who in turn may not need as much health care in the future.
--Phase out LGA but allow cities to impose their own local option taxes to fund services its constituents want. Regional centers, like Mankato-North Mankato, can increase their local option sales tax to help fund infrastructure being used by those people visiting the city. Arguments against: Small cities don't have enough traffic to garner large revenue support for infrastructure services and would be at a disadvantage. Response: Life is never a level playing field. Is it really the responsibility of the state to determine who are the haves and the have nots?
--Look at the estate tax and reduce the amount of taxation (as much as 40% on wealthy Minnesotans). Arguments against: The proportion of population being elderly will be substantial in the coming years and a great degree of revenue will be lost if we cut their taxes. Response: Those elderly may be leaving the state in order to avoid paying the estate tax. These are the least likely to use services (health subsidies, schools, etc.) but will still be here to help fund them.
--Cut the business incentives for new equipment and R&D that favor corporations or specific business activities. In turn, increase tax breaks for small businesses that are the true drivers of job growth. Arguments: This will put us at a disadvantage in attracting major employers. Response: The real concern now is with employers who already are in the state and trying to survive.
There are no easy answers to our budget problem. However, there was a winning formula in 1986 when President Ronald Reagan signed into law a sweep tax law reform. It was done with bipartisan help but it also was backed up with real economic analysis supporting the effect rather than partisan political positioning.
It was whittled away over time by special interest lobbying and legislators looking for their own perks. This is the normal course of how things evolve and we need to get on a path of constantly looking at regular periods of reform that has as its goals -- fairness, simplicity and business competitiveness.
His charge from Governor Mark Dayton was to take some time in the next year to develop proposals to be presented outside of an election cycle which may polarize positions rather than have a productive discussion.
But rather than an objective look at tax structure, it was clear from the presentation that a bulls-eye is still on higher income Minnesotans.
Frans presented slides entitled "While income is increasingly concentrated at the top ... the Top 10% now has 50% share of income" and "The tax burden is being shifted to those with the least ability to pay....The middle class is paying a larger share of Minnesota taxes."
Frans' conclusion: The top 10% of income earners are not "paying their fair share."
This has been a DFL refrain for several years now and it was unfortunate that he led the discussion to business people who may have a different interpretation of the data.
But, Frans did point out that over time, we have shifted a greater share of state revenue coming from property tax at the expense of sales tax. And for the individual income tax, the state has dramatically increased the number of adjustments and credits favoring special interests.
So the question posed by Frans and the state legislators in attendance to business people was "What are you willing to give up?"
The response, instead, was "Let's talk about spending first before we talk about shifting sources of revenue." In other words, have we had a serious discussion about the role of government, prioritizing those roles and determining how to fund those essential services. Afterwards, we can debate if we want other services funded and how.
Easier said then done and, frankly, not in the purview of the commissioner's mandate from the governor. So, let me go back to the charge of "what are we willing to give up?"
Here's a suggested list I gleaned from discussions with people in the community and from tax reform advocates on "what to change."
--Remove sales tax exemption on food, clothing and services. In exchange, lower the rate. Arguments against: "Increasing" taxes on food and clothing is regressive. Response: While it may be regressive, there are elements that suggest wealthier pay more overall for higher priced goods they buy...and of course, a sales tax is a "choice" tax. A T-bone steak will bring in more revenue than the same tax rate on a bag of Cheetos.
--To support reimbursement of health care costs for the needy, increase taxes on tobacco and alcohol. Arguments against: Again, it is a regressive tax. But also unreliable since people may cut their consumption and thereby we have less revenue. Response: Well then it improves the collective health of users who in turn may not need as much health care in the future.
--Phase out LGA but allow cities to impose their own local option taxes to fund services its constituents want. Regional centers, like Mankato-North Mankato, can increase their local option sales tax to help fund infrastructure being used by those people visiting the city. Arguments against: Small cities don't have enough traffic to garner large revenue support for infrastructure services and would be at a disadvantage. Response: Life is never a level playing field. Is it really the responsibility of the state to determine who are the haves and the have nots?
--Look at the estate tax and reduce the amount of taxation (as much as 40% on wealthy Minnesotans). Arguments against: The proportion of population being elderly will be substantial in the coming years and a great degree of revenue will be lost if we cut their taxes. Response: Those elderly may be leaving the state in order to avoid paying the estate tax. These are the least likely to use services (health subsidies, schools, etc.) but will still be here to help fund them.
--Cut the business incentives for new equipment and R&D that favor corporations or specific business activities. In turn, increase tax breaks for small businesses that are the true drivers of job growth. Arguments: This will put us at a disadvantage in attracting major employers. Response: The real concern now is with employers who already are in the state and trying to survive.
There are no easy answers to our budget problem. However, there was a winning formula in 1986 when President Ronald Reagan signed into law a sweep tax law reform. It was done with bipartisan help but it also was backed up with real economic analysis supporting the effect rather than partisan political positioning.
It was whittled away over time by special interest lobbying and legislators looking for their own perks. This is the normal course of how things evolve and we need to get on a path of constantly looking at regular periods of reform that has as its goals -- fairness, simplicity and business competitiveness.
Monday, November 14, 2011
Mankato visits Charlottesville, bringing back...?
About six years ago, Mankato began sending delegations made up of leaders from both the profit and nonprofit sectors -- about equally split -- to learn what other cities are doing. The goal was to broaden perspectives and take home ideas that would benefit the region as a whole.
The delegation has been to Bellingham, WA; Fort Collins, CO and most recently Charlottesville, VA to meet delegations from those cities.
I didn't make it to the first two and the concept was intriguing so this time I hitched a ride. On the agenda was learning more about governmental cooperation, town/gown initiatives, early childhood education programs, downtown rehabilitation and public affairs among other topics.
Here are some takeaways:
--On paper, Charlottesville has a lot in common with Mankato. Population is about the same. It's close to a metropolitan area (Washington DC and Richmond VA). A university town with a strong community college and governmental units were separate so they needed to cooperate on different levels.
But we couldn't be more apart in some important levels. The public-private partnership in the greater Mankato region is much stronger in sharing costs and investments. In Charlottesville, there are few business influences so it relies upon government to reach out for development of which they are loath to do.
-- It's a conflict between preservationists in an area surrounded by the Blue Ridge Mountains and business growth. The fear is the area will turn into a tourist-laden commercial zone like Tennessee's own Gatlinburg or Dollywood. The pendulum has swung pretty heavily to one side. One story told of a major investor wanting to come to town and rather than work on incentives or pave the way to make it easier, the governments there said "We have no objection if you come." The investor didn't.
-- The region relies heavily on federal government contracts, especially in defense, and research parks being developed by the University of Virginia which reaps the benefits of research since it is a privately held institution.
--UVA has a huge influence in the city. Besides the research parks there are a number of medical centers built and staffed by UVA. And investments as donations proliferate the city. It does not take its largess for granted reaching out to the community to discuss its own growth and changes within the neighborhoods. It also extends a large hand in assistance both from its faculty and students to the community. Tenure qualifications include community service.
-- Education is highly valued in the Charlottesville area with strong support for elementary and secondary schools. Both county and city have their own districts. Student teacher ratio in elementary is 13:1 in the county and 10:1 in secondary.
-- There are no "bars" per se in Virginia. If you want to sell alcohol about 60% of your receipts must come from food. Rationale is more safety, lower cost of enforcement, health and treatment. Consequently, with some major investment for upgrades, its downtown area is healthy as a pedestrian mall with shops, restaurants, theaters and other small niche businesses including a book store owned and operated by author John Grisham and a children's museum. At the end of the mall is a Telos Wireless Charlottesville Pavilion built by developer and manager of the Dave Matthews Band on land leased for a dollar a year by the city. DMB started in Charlottesville in the '90s and continues to bring big name bands to the city. Concerts are often free but the beer isn't.
-- The city, counties and UVA share their comprehensive plans to ensure they are in synch with one another especially on the edges.
More viewpoints on this trip will be coming from other participants later in The Free Press.
The delegation has been to Bellingham, WA; Fort Collins, CO and most recently Charlottesville, VA to meet delegations from those cities.
I didn't make it to the first two and the concept was intriguing so this time I hitched a ride. On the agenda was learning more about governmental cooperation, town/gown initiatives, early childhood education programs, downtown rehabilitation and public affairs among other topics.
Here are some takeaways:
--On paper, Charlottesville has a lot in common with Mankato. Population is about the same. It's close to a metropolitan area (Washington DC and Richmond VA). A university town with a strong community college and governmental units were separate so they needed to cooperate on different levels.
But we couldn't be more apart in some important levels. The public-private partnership in the greater Mankato region is much stronger in sharing costs and investments. In Charlottesville, there are few business influences so it relies upon government to reach out for development of which they are loath to do.
-- It's a conflict between preservationists in an area surrounded by the Blue Ridge Mountains and business growth. The fear is the area will turn into a tourist-laden commercial zone like Tennessee's own Gatlinburg or Dollywood. The pendulum has swung pretty heavily to one side. One story told of a major investor wanting to come to town and rather than work on incentives or pave the way to make it easier, the governments there said "We have no objection if you come." The investor didn't.
-- The region relies heavily on federal government contracts, especially in defense, and research parks being developed by the University of Virginia which reaps the benefits of research since it is a privately held institution.
--UVA has a huge influence in the city. Besides the research parks there are a number of medical centers built and staffed by UVA. And investments as donations proliferate the city. It does not take its largess for granted reaching out to the community to discuss its own growth and changes within the neighborhoods. It also extends a large hand in assistance both from its faculty and students to the community. Tenure qualifications include community service.
-- Education is highly valued in the Charlottesville area with strong support for elementary and secondary schools. Both county and city have their own districts. Student teacher ratio in elementary is 13:1 in the county and 10:1 in secondary.
-- There are no "bars" per se in Virginia. If you want to sell alcohol about 60% of your receipts must come from food. Rationale is more safety, lower cost of enforcement, health and treatment. Consequently, with some major investment for upgrades, its downtown area is healthy as a pedestrian mall with shops, restaurants, theaters and other small niche businesses including a book store owned and operated by author John Grisham and a children's museum. At the end of the mall is a Telos Wireless Charlottesville Pavilion built by developer and manager of the Dave Matthews Band on land leased for a dollar a year by the city. DMB started in Charlottesville in the '90s and continues to bring big name bands to the city. Concerts are often free but the beer isn't.
-- The city, counties and UVA share their comprehensive plans to ensure they are in synch with one another especially on the edges.
More viewpoints on this trip will be coming from other participants later in The Free Press.
Wednesday, November 2, 2011
Benson Park area site of new apartments
Construction on an apartment complex next to Benson Park in North Mankato is under way.
With an eye toward 13 units in the years ahead, Craig Theuninck Construction of Kasota is starting with two four-unit apartments being built between the southeast corner of Benson Park and Arlington Lane on Carlson Drive. Completion is targeted for last winter or early spring.
North Mankato City Planner Mike Fischer said the apartments are similar to those Theuninck built at the intersection of Haughton Avenue and Howard Drive.
Residential construction has been expanding around Benson Park most recently with a subdivision built by Drummer Construction on Rolling Green Lane and Timm Road. Plans are for a natural resources-themed park (details here) complete with natural play areas, natural amphitheater, sugar shack/tree house in woodland, picnic area, outdoor classrooms and demonstration areas and a fishing pier on Ladybug Lake.
The city is hoping for state funding assistance to develop the park.
With an eye toward 13 units in the years ahead, Craig Theuninck Construction of Kasota is starting with two four-unit apartments being built between the southeast corner of Benson Park and Arlington Lane on Carlson Drive. Completion is targeted for last winter or early spring.
North Mankato City Planner Mike Fischer said the apartments are similar to those Theuninck built at the intersection of Haughton Avenue and Howard Drive.
Residential construction has been expanding around Benson Park most recently with a subdivision built by Drummer Construction on Rolling Green Lane and Timm Road. Plans are for a natural resources-themed park (details here) complete with natural play areas, natural amphitheater, sugar shack/tree house in woodland, picnic area, outdoor classrooms and demonstration areas and a fishing pier on Ladybug Lake.
The city is hoping for state funding assistance to develop the park.
Thursday, October 6, 2011
Don't like income tax? Blame Prohibition
Let's revisit for a moment today's political sound bites.
We either should "tax the rich and pay our fair share." Or the income tax is "unconstitutional" and "puts an unfair burden on job creators."
Critics on both sides say this is great class warfare fodder. Maybe it is. Real class warfare will emerge when the unemployed continue to be without work in the longest job-related dry spell since the 1930s.
However, rather than feed the flames of emotion, I found it interesting when tracing back the history of the income tax, how it was philosophically devised given the backdrop of a country founded against unfair taxation.
IN THE tender years of America, the federal government was supported by internal taxes , not income taxes. Things like taxes on distilled spirits, carriages, sugar, tobacco, corporate bonds and even slaves. In fact, the only time we looked for alternatives was to help fund the high cost of wars.
The War of 1812 we saw the first sales tax on gold, silverware, jewelry and watches.
Five years later, Congress did away with all internal taxes relying on tariffs of imported goods.
Then the Civil War broke out and Congress enacted the nation's first income tax and by 1872 it eliminated it, focusing rather on taxing tobacco and distilled spirits.
And that proved to be most beneficial for revenue if not so much for the nation's health. Revenue from alcohol taxes accounted for 80 percent of the federal tax collections in 1907.
If you're getting that much revenue, it's because there was a lot of drinking going on and it was having a harmful effect not only on those who drank, but their families and their employers.
The admirable and entrancing Ken Burns PBS series "Prohibition" pointed out that "By 1830, the average American over 15 years old consumed nearly seven gallons of pure alcohol a year – three times as much as we drink today – and alcohol abuse (primarily by men) was wreaking havoc on the lives of many, particularly in an age when women had few legal rights and were utterly dependent on their husbands for sustenance and support."
The subsequent rise of temperance groups and prohibitionists started to have effects on government and by the turn of the century, the fervent "teatotalers" were a formidable force. Tactically, it knew it needed to replace America's reliance on alcohol for revenue, so it got behind the Sixteenth Amendment to the U.S. Constitution in 1913 imposing the national income tax. It soon became the chief source of revenue replacing alcohol and opening up the doors to accepting Prohibition and enacting the 18th Amendment, a prohibition on alcohol.
It should be noted that President Howard Taft, a Republican, pushed for the income tax.
Burns' series points out that "Prohibition cost the federal government a total of $11 billion in lost tax revenue, while costing over $300 million to enforce. The most lasting consequence was that many states and the federal government would come to rely on income tax revenue to fund their budgets going forward."
It was that reliance, that unintended consequence of ending a national vice that spawned the controversial and imperfect national income tax of today.
We either should "tax the rich and pay our fair share." Or the income tax is "unconstitutional" and "puts an unfair burden on job creators."
Critics on both sides say this is great class warfare fodder. Maybe it is. Real class warfare will emerge when the unemployed continue to be without work in the longest job-related dry spell since the 1930s.
However, rather than feed the flames of emotion, I found it interesting when tracing back the history of the income tax, how it was philosophically devised given the backdrop of a country founded against unfair taxation.
IN THE tender years of America, the federal government was supported by internal taxes , not income taxes. Things like taxes on distilled spirits, carriages, sugar, tobacco, corporate bonds and even slaves. In fact, the only time we looked for alternatives was to help fund the high cost of wars.
The War of 1812 we saw the first sales tax on gold, silverware, jewelry and watches.
Five years later, Congress did away with all internal taxes relying on tariffs of imported goods.
Then the Civil War broke out and Congress enacted the nation's first income tax and by 1872 it eliminated it, focusing rather on taxing tobacco and distilled spirits.
And that proved to be most beneficial for revenue if not so much for the nation's health. Revenue from alcohol taxes accounted for 80 percent of the federal tax collections in 1907.
If you're getting that much revenue, it's because there was a lot of drinking going on and it was having a harmful effect not only on those who drank, but their families and their employers.
The admirable and entrancing Ken Burns PBS series "Prohibition" pointed out that "By 1830, the average American over 15 years old consumed nearly seven gallons of pure alcohol a year – three times as much as we drink today – and alcohol abuse (primarily by men) was wreaking havoc on the lives of many, particularly in an age when women had few legal rights and were utterly dependent on their husbands for sustenance and support."
The subsequent rise of temperance groups and prohibitionists started to have effects on government and by the turn of the century, the fervent "teatotalers" were a formidable force. Tactically, it knew it needed to replace America's reliance on alcohol for revenue, so it got behind the Sixteenth Amendment to the U.S. Constitution in 1913 imposing the national income tax. It soon became the chief source of revenue replacing alcohol and opening up the doors to accepting Prohibition and enacting the 18th Amendment, a prohibition on alcohol.
It should be noted that President Howard Taft, a Republican, pushed for the income tax.
Burns' series points out that "Prohibition cost the federal government a total of $11 billion in lost tax revenue, while costing over $300 million to enforce. The most lasting consequence was that many states and the federal government would come to rely on income tax revenue to fund their budgets going forward."
It was that reliance, that unintended consequence of ending a national vice that spawned the controversial and imperfect national income tax of today.
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