Respuesta :
The tariff of 1816 was the first tariff passed by Congress with an explicit function of protecting U. S. manufactured goods from overseas competition. Prior to this, tariffs had been used to raise revenue to operate the national government. The tariff was supported by Northern states, while Southern ones opposed any type of protective tariffs.
Alexander Hamilton's proposal, on the other hand, established an increase in the average rate from 5 percent to between 7 and 10 percent, and proposed the passage of an excise tax. This was passed as a necessary measure for the government to create revenue for its operating expenses as well as to pay its foreign and domestic debt. Hamilton also proposed making imported goods more expensive in order to motivate Americans to buy homemade products. This was different from the 1816 tax in that the revenue was to be in the price of the product, and not in a tariff imposed on imports. However, the proposition failed as it was considered to be essentially a tariff in practice.
The major difference between these two tariffs was that Hamilton’s tariff was imposed to collect revenue whereas tariff of 1816 was imposed to protect United States from Foreign competition.
Further Explanation:
In year 1789, Alexander Hamilton who was Secretary of the Treasury in government of United States, did a calculation by which he knew that the country wanted minimum 3 million dollars to bear expenses related to operations every year along with that they needed additional 75 million dollars to repay the foreign debt every year. But as per the taxing rates which were imposed during that time, It was not possible for the government to generate this much of revenue through tax collections to overcome this issue, Hamilton proposed increase in tax percentage from 5 percent to 7 percent but congress objected this and refused to pass this new bill related to increase of tax but James Madison who was President of the country at that time passed this bill with legislature. The tariff of 1816 was imposed by Congress to protect products manufactured in United States from overseas competition. Before war off 1812 took place, Taxes were imposed by government just to collect revenues after the war, the government felt the need of protecting products that were manufactured in United States by foreign competition and then this tax was imposed.
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Answer details:
Grade: High School
Subject: History
Chapter: Tariffs and Taxation
Keywords:
Tariff, Taxation, United States, War of 1812, Manufacturing, Products, Foreign competition, Legislature, Alexander Hamilton, James Madison, Congress
