It is very possible that on this day in 1921, West Virginia enacted the first broad sales tax. Do you know who loves the sales tax? The rich. I’m sure that the push to get sales taxes all over the United States was the result of the federal income tax enacted in 1913 via the Sixteenth Amendment. The federal income tax remains the only truly progressive tax in the United States. And the sales tax is regressive. This is why conservatives always go on about the federal income tax. They are just fine with the state sales taxes. In fact, many of them want to get rid of the federal income tax and replace it with a value added tax — basically a federal sales tax.
I should be clear, however. West Virginia legislated the sales tax at that time. But it apparently took the state forever to actually getting it working. That great bastion of liberty and supporter of the “common man,” Mississippi was the first state to actually get it going — in 1930, just when the common man could least afford it.
Here in the United States, we have a taxing system that is a mess. It is designed so as to take the maximum amount from the poor, but not make it look like this is what is happening. So everyone focuses on 15 April — the one day when our only progressive tax is collected. But every day — Every minute! — the poor and middle classes are being regressively taxed. But that’s just fairness. Unlike that terrible federal income tax, which is downright un-American!
Happy anniversary to the first broad-based sales tax — the beginning of a terrible American tradition.