Alexander Hamilton Report On Taxation Summary

Proposed in 1791, Secretary of the Treasury Alexander Hamilton wrote his Report on Manufactures with the intent of establishing economic maneuvers that was designed to, in the long run, improve America’s credit by encouraging the expansion of American industries and taxation. Hamilton’s initiatives were ultimately inspired by his Federalist agenda as supported by the Washington administration. The report primarily stresses the importance of spreading the nation’s ability to produce and specialize in particular trades for the mutual benefit of the whole entire nation—not just the white, male upper class citizen. Hamilton hypothesized within this report that if America followed his series of actions, there would be growth within the American

In the past, colonial America has been strongly opposed to taxes. However, in order to be fully established as a nation that can be recognized by such a super power such as Great Britain or Spain, America must make money as a nation—not just as individual states. The first move is by imposing duties on foreign articles. This, Hamilton designed, to be beneficial to American manufacturers. To further promote the American market, he advises the “prohibitions of rival articles” (Hamilton, 16). He extends in a later point that by taxing foreign goods more than American goods of the same quality, people should become more inclined to buy the American-made product. So while the tax exists to raise revenue to decrease the national debt, it will also promote buying goods that are made within the country. Hamilton introduces the idea of bounties, and later, the use of a specific kind of bounties for those with “superiority … or skill” within a trade (Hamilton, 17). Up until this point, Hamilton has been direct with drastic measures of taxation. In his seventh point he touches upon the “drawbacks of duties” (Hamilton, 18). Just as in modern America, not all items are taxed, Hamilton takes the time to discuss the exceptions to clarify which goods will not be taxed. This, in his eighth point, is to once again encourage manufacturing at home and, of course, the use of machinery. The final points