Tax revolt
Encyclopedia
A tax revolt is a political struggle to repeal, limit, or roll back a tax
.
, the term "tax revolt" is sometimes used to refer to a series of anti-tax state initiative
campaigns. The first significant wave of these campaigns was during the 1930s. The Great Depression
introduced unprecedented tax burdens to Americans. While real estate values plummeted and unemployment skyrocketed, the cost of government remained high. As a result, taxes as a percentage of the national income nearly doubled from 11.6 percent in 1929 to 21.1 in 1932. Most of the increase took place at the local level and especially squeezed the resources of real estate taxpayers. Local tax delinquency rose steadily to a still standing record of 26.3% in 1933..
Many Americans reacted to these conditions by forming taxpayers' leagues to call for lower taxes and cuts in government spending. By some estimates, there were three thousand of them by 1933. Taxpayers' leagues endorsed such measures as laws to limit and rollback taxes, lowered penalties on tax delinquents, and cuts in government spending. Partly as a result of their efforts, sixteen states and numerous localities adopted property tax limitations while three states instituted homestead exemptions.
While taxpayers' leagues usually favored traditional legal and political strategies, a few were more direct. Probably the best known of these was the Association of Real Estate Taxpayers
in Chicago
. From 1930 to 1933, it led one of the largest tax strikes in American history. At its height, it had 30,000 paid members, a budget of $600,000, and a weekly radio show.
By 1933, the taxpayers' leagues had entered a period of decline. Several factors undermined the conditions that had nurtured revolt. For example, economic conditions gradually improved, the federal government extended aid to homeowners, and local governments reduced reliance on real estate taxes. To some extent, the tax revolt also fell victim to an effective counterattack by municipal reformers, government officials, and the holders of municipal debt such as bondholders and bankers who formed so-called "Pay Your Taxes" campaigns throughout the country. These campaigns used a combination of door-to-door solicitation, threats of coercion, and inducements, such as installment payment plans, to collect back taxes.
An alternative theory describing the decline of the taxpayers' leagues is that laws limiting existing taxes and new tax revenues from the manufacture and sale of alcohol due to the repeal of prohibition
eliminated the need for the taxpayers' leagues.
passed Proposition 13
, sponsored by Howard Jarvis
and passed overwhelmingly by voters in 1978, which drastically limited property tax
levels in the state.
In subsequent years, the state initiative process, initially championed by Populists and progressive
s, has been increasingly used for such purposes by conservative
and corporate
political forces. In the United States, notable examples include a series of initiatives in Oregon
(see Oregon tax revolt
) and Washington (see Tim Eyman
), the Taxpayer Bill of Rights
(TABOR) in Colorado
, and Proposition 2½ in Massachusetts
.
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
.
1930s, The Great Depression
In the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the term "tax revolt" is sometimes used to refer to a series of anti-tax state initiative
Initiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
campaigns. The first significant wave of these campaigns was during the 1930s. The Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
introduced unprecedented tax burdens to Americans. While real estate values plummeted and unemployment skyrocketed, the cost of government remained high. As a result, taxes as a percentage of the national income nearly doubled from 11.6 percent in 1929 to 21.1 in 1932. Most of the increase took place at the local level and especially squeezed the resources of real estate taxpayers. Local tax delinquency rose steadily to a still standing record of 26.3% in 1933..
Many Americans reacted to these conditions by forming taxpayers' leagues to call for lower taxes and cuts in government spending. By some estimates, there were three thousand of them by 1933. Taxpayers' leagues endorsed such measures as laws to limit and rollback taxes, lowered penalties on tax delinquents, and cuts in government spending. Partly as a result of their efforts, sixteen states and numerous localities adopted property tax limitations while three states instituted homestead exemptions.
While taxpayers' leagues usually favored traditional legal and political strategies, a few were more direct. Probably the best known of these was the Association of Real Estate Taxpayers
Association of Real Estate Taxpayers
The Association of Real Estate Taxpayers was an organization of real-estate taxpayers in Chicago and Cook County, Illinois. Between 1931 and 1933, it organized one of the largest tax strikes in American history...
in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
. From 1930 to 1933, it led one of the largest tax strikes in American history. At its height, it had 30,000 paid members, a budget of $600,000, and a weekly radio show.
By 1933, the taxpayers' leagues had entered a period of decline. Several factors undermined the conditions that had nurtured revolt. For example, economic conditions gradually improved, the federal government extended aid to homeowners, and local governments reduced reliance on real estate taxes. To some extent, the tax revolt also fell victim to an effective counterattack by municipal reformers, government officials, and the holders of municipal debt such as bondholders and bankers who formed so-called "Pay Your Taxes" campaigns throughout the country. These campaigns used a combination of door-to-door solicitation, threats of coercion, and inducements, such as installment payment plans, to collect back taxes.
An alternative theory describing the decline of the taxpayers' leagues is that laws limiting existing taxes and new tax revenues from the manufacture and sale of alcohol due to the repeal of prohibition
Prohibition
Prohibition of alcohol, often referred to simply as prohibition, is the practice of prohibiting the manufacture, transportation, import, export, sale, and consumption of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the...
eliminated the need for the taxpayers' leagues.
1970s and later
A second wave of tax revolts began in the late 1970s and were particularly popular in the West. In 1978, voters in CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
passed Proposition 13
California Proposition 13 (1978)
Proposition 13 was an amendment of the Constitution of California enacted during 1978, by means of the initiative process. It was approved by California voters on June 6, 1978. It was declared constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn,...
, sponsored by Howard Jarvis
Howard Jarvis
Howard Arnold Jarvis was an American businessman, lobbyist, and politician. He was an anti-tax activist responsible for passage of California's Proposition 13 in 1978.-Early life and education:...
and passed overwhelmingly by voters in 1978, which drastically limited property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
levels in the state.
In subsequent years, the state initiative process, initially championed by Populists and progressive
Progressivism
Progressivism is an umbrella term for a political ideology advocating or favoring social, political, and economic reform or changes. Progressivism is often viewed by some conservatives, constitutionalists, and libertarians to be in opposition to conservative or reactionary ideologies.The...
s, has been increasingly used for such purposes by conservative
Conservatism
Conservatism is a political and social philosophy that promotes the maintenance of traditional institutions and supports, at the most, minimal and gradual change in society. Some conservatives seek to preserve things as they are, emphasizing stability and continuity, while others oppose modernism...
and corporate
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
political forces. In the United States, notable examples include a series of initiatives in Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
(see Oregon tax revolt
Oregon tax revolt
The Oregon tax revolt is a political movement in Oregon which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States...
) and Washington (see Tim Eyman
Tim Eyman
Tim Eyman is a conservative political activist in the U.S. state of Washington. He advocates for a smaller state government, through lowering state taxes and fees...
), the Taxpayer Bill of Rights
Taxpayer Bill of Rights
The Taxpayer Bill of Rights is a concept advocated by conservative and free market libertarian groups, primarily in the United States, as a way of limiting the growth of government...
(TABOR) in Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, and Proposition 2½ in Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
.
See also
- Tom CryerTom CryerTommy K. Cryer, also known as Tom Cryer , is an attorney in Shreveport, Louisiana who was charged with and later acquitted of willful failure to file U.S. Federal income tax returns in a timely fashion. In a pending case in United States Tax Court, Cryer is contesting a determination by the U.S...
- History of tax resistanceHistory of tax resistanceTax resistance has probably existed as long as those in a position of power have imposed taxes, and most examples have probably been lost to history. In addition, many historical rebellions, civil wars, and other uprisings have been prompted by resentment against taxation or had tax refusal as a...
- Carla HowellCarla HowellCarla A. Howell is an American political activist and small government advocate. She is President of the Center For Small Government. She is most known for organizing tax cut initiative petitions, called ballot measures in other states...
, Person behind referendums to eliminate the Massachusetts personal income tax. - Starve-the-beast
- Tax resistanceTax resistanceTax resistance is the refusal to pay tax because of opposition to the government that is imposing the tax or to government policy.Tax resistance is a form of civil disobedience and direct action...
- Tea Party movementTea Party movementThe Tea Party movement is an American populist political movement that is generally recognized as conservative and libertarian, and has sponsored protests and supported political candidates since 2009...
- Tennessee Tax RevoltTennessee Tax RevoltTennessee Tax Revolt is a nonpartisan grassroots political organization which grew out of efforts during the second administration of former governor of Tennessee Don Sundquist to enact a state income tax.-Public protests:...
External links
- The Tax Revolt Turns 25, from the Cato InstituteCato InstituteThe Cato Institute is a libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Edward H. Crane, who remains president and CEO, and Charles Koch, chairman of the board and chief executive officer of the conglomerate Koch Industries, Inc., the largest privately held...
- Tennessee Tax Revolt