Tariff of 1872
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| Long title | An Act to reduce duties on imports and to reduce internal taxes |
|---|---|
| Nicknames | Revenue Act of 1872 |
| Enacted by | the 42nd United States Congress |
| Effective | June 6, 1872 |
| Citations | |
| Statutes at Large | 17 Stat. 230 |
| Codification | |
| Titles amended | 19 U.S.C.: Customs Duties |
| Legislative history | |
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The Tariff of 1872 was a United States federal law enacted during the presidency of Ulysses S. Grant which moderately reduced tariff rates on imports and scaled back internal taxes.[1] It was part of post-Civil War efforts to transition the economy toward peacetime conditions and to reduce the federal budget surplus. The act followed growing calls from industrial and agricultural sectors for lower duties and lighter tax burdens.[2]
Background
[edit]Following the American Civil War, the federal government had maintained high tariffs and excise taxes to finance wartime debt and Reconstruction. By the early 1870s, however, economic conditions had stabilized, and there was pressure to lower taxes, especially on manufactured goods and consumer products.[2]
Provisions
[edit]The Tariff of 1872 included the following major provisions:
- Reduction of duties on a wide range of imported goods, especially raw materials and manufactured items such as wool, iron, and textiles.[1]
- Elimination or reduction of several internal revenue taxes, including taxes on tea, coffee, and tobacco.[2]
- It aimed to strike a balance between protecting American industries and lowering costs for consumers.[1]
Political Support
[edit]The legislation was supported by both Republicans and Democrats seeking economic relief and greater trade liberalization. However, some protectionists expressed concern that the tariff reductions could harm domestic manufacturers.[1]
Effects
[edit]The Tariff of 1872 was relatively short-lived. It was partially reversed by the Tariff of 1875 following a downturn in federal revenues and the economic pressures stemming from the Panic of 1873.[1] The tariff reductions failed to satisfy either free-trade advocates or protectionists, leading to further tariff debates later in the century.[2]
The act was signed into law by President Ulysses S. Grant on June 6, 1872.[3]
See also
[edit]- History of tariffs in the United States
- Morrill Tariff
- Tariff of 1875
- Panic of 1873
- Revenue Act of 1872
References
[edit]- ^ a b c d e Taussig, F. W. The Tariff History of the United States. New York: G.P. Putnam's Sons, 1914. Archive.org
- ^ a b c d Stanwood, Edward. American Tariff Controversies in the Nineteenth Century. Boston: Houghton Mifflin, 1903. Volume I at Archive.org
- ^ U.S. Congress. Statutes at Large, 42nd Congress, Session 2, Chapter 315 (1872). Full text (PDF)