President Franklin Roosevelt’s 100% Tax Plan Finance Term Paper

President Franklin Roosevelt's 100% tax plan
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President Franklin Roosevelt 100% tax plan
President Franklin Roosevelt, who was in power from 1933 to 1945 in the United States, brought on an Act in 1935, known as The Revenue Act. According to Bank (2012), the Act was also popularly known as the soak the rich tax. This Act was majorly enacted on huge profit-making corporations for fairness. This altered the tax system based on the performance of the economy and needs to collect more revenues after the bombing of Pearl Harbor (Jones, 1988). Here is a brief explanation of the 100% tax plan by President Roosevelt and its influence on Americans.
In a speech to the Congress in April 1942, Roosevelt mentioned that All Americans to earn what they deserve after paying a tax of up to $25,000 for the whole year. One advantage to this type of tax was that it was not levied on small corporations that cannot manage tax burdens. In the presence of a flat tax, there was little differentiation between large and small entities (Edwin, 1988). This type of tax, however, had some disadvantage on large corporations. These large organizations are entities separate from the individuals they employed. In this case, it was tricky to quantify whether the tax affected the individuals. The members who would be affected were the shareholders, managers, and other employees.
In October, Roosevelt provided an order at the executive level that restricted top corporate salaries to $25,000 following taxes. Roosevelt declared that it would "provide for greater equality in contributing to the war effort," Many perceived this Act as a plan designed to gain political advantage more than a tax measure to salvage and speed development of the economy. Mark Leff described the tax program as a "symbolic showpiece,"...