State Taxation(USA)

Look up Hamilton's financial policy.

Excise Taxes and Tariffs were the source. No direct contributions from the states. No income taxes. And of course, loans. Which, thanks to Hamilton's Financial plan, made interest US Bonds very cheap for the Federal Government.

In fact, until 1913, tariffs were the main source of US Revenue. The US Market was one of the mos protected in the world. And it resulted in budget surpluses on most peaceful years.
How much opposition did Hamilton face in States, Representatives and Senate?
 
How much opposition did Hamilton face in States, Representatives and Senate?

A lot. But it passed with Northern and some Southern Support. In exchange for the South getting Washington D.C. on the Potomac.

And when Jefferson came in power--he kept Hamilton's system intact and did not repeal anything.
 
So what would be the best PoD to scuttle Hamilton´s system between 1789 and 1808? And what was the alternative at that point?

Hamilton should not compromise on the capital. He must insist on New York City as capital.

Which is difficult since to him, NYC being capital isn't such a big deal. While to the South, to them, getting the capital seemed to be a very big deal.

So they give the North tariffs, the assumption plan, excise taxes, and get in exchange, Washington D.C. on the Potomac.

Sounds like a great bargain for the South!
 
So what would be the best PoD to scuttle Hamilton´s system between 1789 and 1808? And what was the alternative at that point?

An alternative to Hamilton's plan, his opponents did not give. They did give many reason why it should not be passed, mostly on Constitutional and Practical reasons, but they did not give a viable alternative to solve the financial crisis of the U.S.

Hamilton's Plan is mostly:

1. The Federal Government would pay all foreign debt on par.
2. The Federal Government would pay assume all state debt on par.
3. The Federal Government would redeem all government paper money and bonds issued during the revolution at face value, paying the current owners of the bonds and securities.
4. The Bank of the United States would be the depository of U.S. Government funds, and would handle financial transactions of the government.
5. The Government would issue new bonds to pay for the debt.
6. The debts and the interest of the debts would ultimately be paid by the tariffs and excise taxes imposed by the government.

The plan worked wonderfully. It made US bonds on the Dutch market the cheapest in terms of interest rates, raised the public credit of the United States, allowed the US to get short term money through loans (like the money used to pay for Louisiana), and ultimately paid off the entire revolutionary debt, while ensuring budget surpluses throughout most of the peaceful years.
 
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