A Conservative Case for Taxing the Rich: Lessons From History
Feb 14, 2025
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Joseph J. Thorndike, a Tax Notes contributing editor and historian, explores the conservative case for taxing the rich, drawing connections to President Trump’s concept of 'the forgotten man.' He examines the term's historical evolution and its reinterpretation in modern politics. Thorndike delves into the complexities of tax reform, advocating for closing loopholes and widening the tax base. He also discusses the challenges of progressive taxation amidst resistance from powerful taxpayers, highlighting the ongoing need for fair and effective tax policies.
The historical context of 'the forgotten man' reveals the evolving political narrative around taxation and the responsibility towards economic equity.
Roswell McGill's advocacy for a fair taxation system highlights the importance of addressing tax loopholes to maintain government revenue and fiscal accountability.
Deep dives
The Historical Roots of the Forgotten Man
The phrase 'the forgotten man' has deep historical roots and has been co-opted by various political figures over the years, most notably by President Trump. Originally popularized by Franklin D. Roosevelt during his first campaign, it was first used by sociologist William Graham Sumner in the late 19th century to articulate a conservative view that the undeserving poor burden the 'working man.' This phrase has morphed in its usage, shifting between conservative and liberal ideologies, highlighting the ongoing struggle for its control in political discourse. Roosevelt’s invocation aimed to identify those at the bottom of the economic pyramid as essential to America's recovery, in stark contrast to Sumner's exclusionary perspective.
Roswell McGill and the Evolution of Tax Policy
Roswell McGill emerged as a pivotal figure in the evolution of U.S. tax policy during the early 20th century, advocating for a fair and productive taxation system. He emphasized the necessity of lowering exemptions on income taxes while increasing rates to broaden the tax base and raise revenue to address significant deficits. During his time with the Roosevelt administration, he focused on closing tax loopholes and believed that visible taxes were crucial for encouraging public engagement with government expenditure. McGill's perspective combined progressive beliefs within a conservative framework, ultimately influencing modern tax policy and the structure of income taxes in the U.S.
The Relevance of McGill's Ideas Today
McGill's recommendations on tax reform have contemporary significance, especially regarding base broadening and addressing the structural deficits faced by today’s government. He recognized the complications caused by sophisticated tax practitioners exploiting ambiguities in the tax code, a challenge that remains relevant as lawmakers grapple with complexity and loopholes. The focus on ensuring that the income tax remains a viable source of revenue reflects ongoing debates about progressive taxation and wealth taxes in modern discussions. Ultimately, while McGill's conservative viewpoints might not entirely align with today's politics, his emphasis on adequate revenue and fair taxation continues to resonate in current fiscal conversations.
Tax Notes contributing editor and historian Joseph J. Thorndike discusses President Trump’s referral to “the forgotten man” and how the phrase connects to a conservative case for taxing the rich.
** This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.
*** Credits Host: David D. Stewart Executive Producers: Jasper B. Smith, Paige Jones Showrunner: Jordan Parrish Audio Engineers: Jordan Parrish, Peyton Rhodes
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