Raleigh NC Accountant

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862

Could there be any doubtful thoughts about it? Certainly the American Civil War was about slavery… wasn’t it? Well actually, one of the greatest popular myths in our history is that the Civil War began over the slavery issue and that Lincoln, the Great Emancipator, used a terrible struggle to break the claims of bonding that enslaved over 3 million black Americans. Right before the war, the South had all it could have wanted.

In 1860, Southerners controlled the Supreme Court and Lincoln and Congress were beginning the process of passing a constitutional amendment to protect slavery for all time! What happened?

Let’s rewind the time back to the year 1832. By 1832 the national debt left from the War of 1812 had been re-paid and Southerners didn’t see a need to continue the exorbitant import taxes that seemed to only raise price tags for the South’s consumers. Either the South had to pay high import taxes on imported goods or it purchased Northern manufactured goods at terribly overpriced prices. In either case, Southern money ended up in the North. To say the least, the South was not happy with this arrangement. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

Consequently, in 1832 a convention was held in South Carolina to nullify these federal import taxes. The convention declared the tax was unconstitutional and gave the governor the power to to resist the enforcing of these taxes instituted by the federal government. It looked like a civil war was in the making. Cool heads won over, however, and the Great Compromise of 1833 reduced import taxes over the next few years to an area the South could tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

Over the ensuing years, however, Northern commercial and manufacturer interests forced through Congress new taxes that again stressed Southern planters and made Northern manufacturers become rich. In 1850, John C. Calhoun, the South’s greatest outstanding spokesperson, gave a speech to Congress. It spoke of three grievances of the South that may cause secession from the Union and war. The first two involved fears about the erosion of power of the South in general and the the power of state government as well.

The third, and only solid complaint, was about tax policy. In Calhoun’s eyes, federal import taxes was a class legislation against the South. Huge amounts of taxation on the South raised funds that were spent in the North. The focus of economic life in the country was steadily changing heavily to the North. Calhoun threatened secession if the taxes were not lowered. But what of the slavery issue? Well, during his run for the presidency in 1860, Lincoln repeatedly said he would not interfere with slavery in the South. Truly, the vast majority of Northerners didn’t really care about black men in bondage, any more than they cared about the Indian in the West or poor uneducated workers in factories. By and large many black slaves got better treatment and more compassion than their working-class counterparts in the North. Lincoln, actually, promised Southern plantation-owners that run-away slaves would be returned. The Congress and then the Supreme Court (Dred Scott decision) continually affirmed that slavery was here to stay.

But, as soon as Lincoln was placed in office and Congress came together in 1861, they enacted new high import tariffs. Slavery wasn’t an issue – higher import taxes were. In his inaugural address Lincoln said he would go get the customs in the South even if there happened to be a secession!

Fort Sumter, near the entrance of the Charleston Harbor, started to fill with Union soldiers to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The conflict had been brewing for decades – but it wasn’t over the slaves. It was over taxes.

Two years after that, Lincoln issued the Emancipation Proclamation, and then only after several military defeats, as the last resort to rally the North to a noble cause. With respect to the slave issue – most the North did not care much about black people in bondage, no more than they cared about Indians to the west and the impoverished uneducated peasants in the factories. By and large, many black slaves received better treatment and greater compassion than their impoverished counterparts in the North.

That’s it for the History of Taxes Series!

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