Tax and spend
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"Tax and spend" is a term used in politics meaning
government policy Public policy is an institutionalized proposal or a decided set of elements like laws, regulations, guidelines, and actions to solve or address relevant and real-world problems, guided by a conception and often implemented by programs. Public p ...
to increase or collect
tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
es for the purpose of increasing
public spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual o ...
. The term is commonly used as criticism; some have embraced the label. The 1936
United States Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
case '' United States v. Butler'' grappled with the question of the
constitutionality Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
of tax and spend policy, with the Court majority concluding that "the power to tax and spend includes the power to relieve a nationwide economic maladjustment by conditional gifts of money."


History

The term, in the form "taxing and spending", is attested from 1928. It was used, in the form "spend and tax", in the October 18, 1938 edition of ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'' in a profile of President
Franklin D. Roosevelt Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
's advisor Harry Hopkins, the Administrator of the
Works Progress Administration The Works Progress Administration (WPA; renamed in 1939 as the Work Projects Administration) was an American New Deal agency that employed millions of jobseekers (mostly men who were not formally educated) to carry out public works projects, i ...
(WPA), a key agency of Roosevelt's New Deal program, written by
Arthur Krock Arthur Bernard Krock (November 16, 1886 – April 12, 1974) was a Pulitzer Prize winning American journalist. In a career spanning several decades covering the tenure of eleven United States presidents he became known as the "Dean of Washington ne ...
, with the subheading "Spend and Tax, opkins'Motto". The term appeared again in a later 1938 report in ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'', written by Krock, quoting Hopkins: " opkinsmet a criticism of this sinister combination by saying: 'We will spend and spend, and tax and tax, and elect and elect. According to Krock, the "sinister combination" was Roosevelt, Hopkins, United States Postmaster General
James Farley James Aloysius Farley (May 30, 1888 – June 9, 1976) was an American politician and Knight of Malta who simultaneously served as chairman of the New York State Democratic Committee, chairman of the Democratic National Committee, and Postmaste ...
, and New Jersey Democratic political boss
Frank Hague Frank Hague (January 17, 1876 – January 1, 1956) was an American Democratic Party politician who served as the Mayor of Jersey City, New Jersey from 1917 to 1947, Democratic National Committeeman from New Jersey from 1922 until 1949, and Vice ...
. Two weeks later, Hopkins and Krock argued the point in duelling letters to the editor of ''The New York Times.'' First Hopkins flatly denied he had ever laid out the "tax, spend, elect" formulation, but Krock asserted that "I used and printed the quotation after careful verification because, while it fitted completely into Mr. Hopkins's political philosophy as I have understood it, I wanted to be certain of the language." Krock also revealed that he had spoken with witnesses who claimed to have heard Hopkins make the comment at the Empire Race Track in
Yonkers, New York Yonkers () is a city in Westchester County, New York, United States. Developed along the Hudson River, it is the third most populous city in the state of New York, after New York City and Buffalo. The population of Yonkers was 211,569 as en ...
, including a "reputable citizen" who was "in lighter hours, a playmate of Mr. Hopkins".


Use of tax and spend policies

Tax and spend is an umbrella term that can refer to various government policies or programs which raise revenues in order to fund government programs. For example, many local jurisdictions, particularly in theraise revenues for specific programs through
referendums A referendum (plural: referendums or less commonly referenda) is a direct vote by the electorate on a proposal, law, or political issue. This is in contrast to an issue being voted on by a representative. This may result in the adoption of a ...
to voters. Referendums on tax and spend programs often raise revenues in the United States through
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
or sales tax to fund public education or
public works Public works are a broad category of infrastructure projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community. They include public buildings ( municipal buildings, sc ...
projects, such as transportation infrastructure, housing, or public safety programs.


Political discourse

Throughout the Great Depression, opponents of President Roosevelt's New Deal tax and spend programs criticized the agenda. The 1936 case, ''United States v. Butler'', ultimately gave Roosevelt authority to tax and spend under the
Taxing and Spending Clause The Taxing and Spending Clause (which contains provisions known as the General Welfare Clause and the Uniformity Clause), Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States it ...
of the United States Constitution. In a 1989 opinion column for ''The New York Times'', then-chairman of the
National Republican Congressional Committee The National Republican Congressional Committee (NRCC) is the Republican Hill committee which works to elect Republicans to the United States House of Representatives. The NRCC was formed in 1866, when the Republican caucuses of the House and ...
Guy Vander Jagt Guy Adrian Vander Jagt ( ; August 26, 1931 – June 22, 2007) was a Republican politician from Michigan. He was a member of the U.S. House of Representatives and Chairman of the National Republican Congressional Committee. Vander Jagt was desc ...
wrote that "Tax-and-Spend Democrats Never Learn", citing President Bush's " no new taxes" slogan to critique tax and spend policies advocated by some Democrats. However, a 2019 article in ''
The Washington Times ''The Washington Times'' is an American conservative daily newspaper published in Washington, D.C., that covers general interest topics with a particular emphasis on national politics. Its broadsheet daily edition is distributed throughou ...
'' quotes Jim Manley, a Democratic strategist: “Democrats used to be scared of ax and spend but not anymore," with the author adding that "Democrats are convinced that the Reagan-era epithet “tax-and-spend liberals” is no longer a candidate killer." The term is used similarly in the United Kingdom and Australia.


References

{{Reflist, 2 Tax Political slurs