A History of Tax Practices, Section Nine: Taxation, Slavery, and the American Civil War
Written by admin on February 3, 2010 – 10:27 pm -W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
“Slavery - the one cause of the Civil War.” - John Stuart Mill, 1862
Can there be a doubtful thoughts concerning this topic? Of course the American Civil War was about slavery… wasn’t it? Well actually, one of the greatest hoaxes in American history is that the Civil War was started because of slavery and that Lincoln, the Great Emancipator, fueled a terrible war to break the claims of bonding that shackled over three million black Americans. Just prior to the war, the South had everything its way.
In 1860, the South controlled the Supreme Court and Lincoln and Congress were approving a constitutional amendment to protect slavery for all time! So what happened?
We should move the time back to the year 1832. By 1832 the national debt from the War of 1812 had been re-paid and the South didn’t see a need to keep up the high import taxes that seemed to only jack up prices for the South’s consumers. Either the South paid high import taxes on foreign goods or it purchased Northern manufactured goods at terribly overpriced prices. Either way, Southern funds ended up in the North. To say the South wasn’t happy with this arrangement would be an understatement. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!
So, in 1832 a convention was held in South Carolina to nullify these federal import taxes. The convention decided the tax was unconstitutional and authorized the governor to resist the enforcement of the import taxes instituted by the national government. It looked like a civil war was in the works. Cool heads prevailed, however, and the Great Compromise of 1833 reduced import taxes over the next few years to levels the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
Over the ensuing years, however, Northern corporate and manufacturer companies forced through Congress more taxes that once again oppressed Southern planters and allowed Northern Manufacturers to become rich once again. In 1850, John C. Calhoun, the South’s greatest outstanding spokesperson, gave a speech to Congress. His speech spoke of 3 grievances of the South that could cause secession from the Union and war. The first two involved fears about the erosion of power of the South in general and the the power of state government in particular.
The third, and only concrete complaint, was about taxation. In Calhoun’s eyes, federal import taxes was a targeted legislation against the South. Huge amounts of taxation on the South created funds that were spent in the North. The center of economic strength in the United States was shifting strongly to the North. Calhoun threatened secession if the taxes weren’t lowered. But what of the slavery issue? Well, in his run for the presidency in 1860, Lincoln steadily repeated he would not do anything about slavery in the South. Truly, most Northerners didn’t care much about enslaved blacks, any more than they worried about the Indian in the West or poor uneducated workers in factories. The majority of black slaves received substantially better quality treatment and better compassion than their counterparts in the North. Lincoln, actually, promised Southern slave-owners that fugitive slaves would be returned. The Congress and subsequently the Supreme Court (Dred Scott decision) continually acknowledged that slavery was here to stay.
But, right as Lincoln was elected and Congress came together in 1861, they created more high import tariffs. Slavery wasn’t an problem - higher import taxes were. In his inaugural address Lincoln stated he would go get the customs in the South even if there was a secession!
Fort Sumter, at the beginning of the Charleston Harbor, started to fill with Union soldiers to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The conflict had been stewing for decades - but it was not over the slaves. It was about tax policy.
Two years after that, Lincoln put into action the Emancipation Proclamation, and then only after repeated military battles, as the last resort to rally the North to a noble cause. To address the slave issue - the majority of the North didn’t care much about black people in bondage, no more than they cared of Indians in the west or impoverished uneducated workers in the factories. For the most part, many black slaves received better treatment and more compassion than their impoverished counterparts in the North.
That’s it for the History of Taxes Series!
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