1845 James K. Polk - Black Tariff

The death of Free Trade? In 1842, Congress passed the Black Tariff, which had reversed the effects of earlier attempts to lower the tariff rates. Backed by the Whig Party and industrial interests, the Black Tariff raised average tariff rates to almost 40%. One of President Polk's first call to action was to reduce tariffs and increase trade with other countries like Great Britain. Polk gave congress and us a lesson on taxation and protectionism. James Polk believed duties should be for the sole purpose of raising revenue, not to provide protection to individual industries or groups (imagine that today!) In his address to congress in 1845, he gave congress and us an education on taxation and protectionism. We would do well to listen.

"If the duty be raised to 10 per cent, it will produce a greater amount of money and afford greater protection. If it be still raised to 20, 25, or 30 per cent, and if as it is raised the revenue derived from it is found to be increased, the protection or advantage will also be increased; but if it be raised to 31 per cent, and it is found that the revenue produced at that rate is less than at 30 per cent, it ceases to be a revenue duty. To raise the duties higher than that point, and thereby diminish the amount collected, is to levy them for protection merely, and not for revenue. As long, then, as Congress may gradually increase the rate of duty on a given article, and the revenue is increased by such increase of duty, they are within the revenue standard. When they go beyond that point, and as they increase the duties, the revenue is diminished or destroyed; the act ceases to have for its object the raising of money to support Government, but is for protection merely"

http://www.presidency.ucsb.edu/ws/?pid=29486
http://www.ushistoryscene.com/uncategorized/who-is-james-k-polk/

Today

Ironically, today tariffs and duties are no longer used as a means to generate revenue. That all changed in 1913 under Woodrow Wilson, when the Revenue Act was enacted. But it wasn't until the 1980s, under Reagan & Bush, that the protectionist ideology was abandoned. It was different times, but still the same story of class warfare. In 1846 during Polk's second address to congress, he stated:
"By it (tariff act of 1842) the taxes were imposed not for the legitimate purpose of raising revenue, but to afford advantages to favored classes at the expense of a large majority of their fellow-citizens. Those employed in agriculture, mechanical pursuits, commerce, and navigation were compelled to contribute from their substance to swell the profits and overgrown wealth of the comparatively few who had invested their capital in manufactures. The taxes were not levied in proportion to the value of the articles upon which they were imposed, but, widely departing from this just rule, the lighter taxes were in many cases levied upon articles of luxury and high price and the heavier taxes on those of necessity and low price, consumed by the great mass of the people. It was a system the inevitable effect of which was to relieve favored classes and the wealthy few from contributing their just proportion for the support of Government, and to lay the burden on the labor of the many engaged in other pursuits than manufactures."