Mellon tax cuts of the 1920s

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The Mellon tax cuts of the 1920s were a series of U.S. federal income tax reductions championed by Treasury Secretary Andrew Mellon that significantly lowered top marginal rates in an effort to spur investment and economic growth.

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Mellon tax cuts of the 1920s canonical 1

Statements (49)

Predicate Object
instanceOf United States federal tax reform
economic policy
tax policy
affectedTaxType federal estate tax
federal individual income tax
appliesToJurisdiction United States government
surface form: United States federal government
architect Andrew W. Mellon
surface form: Andrew Mellon
associatedWithEra Roaring Twenties
country United States of America
surface form: United States
criticizedFor contributing to income inequality
favoring the wealthy
economicPhilosophy classical liberalism
supply-side economics
effectOnTaxStructure narrowed tax base at the top
reduced progressivity of income tax
endTime 1929
fieldOfStudy economic history of the United States
fiscalPolicyType tax reduction
hasPart Revenue Act of 1921
Revenue Act of 1924
Revenue Act of 1926
Revenue Act of 1928
implementedBy United States Congress
implementedUnderPresident Calvin Coolidge
Herbert Hoover
Warren G. Harding
influencedBy post–World War I economic adjustment
justification belief that lower rates would increase taxable income
belief that lower rates would maintain or raise federal revenues
legislativeBody United States Congress
namedAfter Andrew W. Mellon
surface form: Andrew Mellon
opposedBy progressive reformers
partOf United States fiscal policy in the 1920s
policyGoal encourage capital formation
promote economic growth
reduce federal income tax rates
reduce tax burden on high-income earners
stimulate investment
positionHeldByArchitect Secretary of the Treasury
surface form: United States Secretary of the Treasury
precededBy high wartime tax rates of World War I
proposedBy Andrew W. Mellon
surface form: Andrew Mellon
reducedTopMarginalRateFrom 73 percent
reducedTopMarginalRateTo 25 percent
significantFor development of modern U.S. tax policy
startTime 1921
supportBase pro-business Republicans
timePeriod 1920s
topMarginalRateAfterReform 25 percent
topMarginalRateBeforeReform 73 percent

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Andrew W. Mellon notableWork Mellon tax cuts of the 1920s