Yes, back in the late 1800s the government funded itself with tariffs and there was no income tax. Of course, in those days, the government spent 1/20 of 1 percent of what it spends today, in inflation-adjusted terms. From Jeffrey A. Tucker at The Epoch Times via zerohedge.com:
Commentary
There was a time, before 1913, when you could keep every penny you earned. You did not have to file with the federal government, telling them what you earned and giving the feds their cut. Your finances were your business and no one else’s. You had the right to earn, own, and keep property, and it was sacrosanct, guaranteed by U.S. law and tradition.
There were no audits, investigations, account freezes, withholdings, or any other forms of payment. There was your productivity and you and that’s all.
How was the government funded? It earned revenue through tariffs. These are paid directly by importers and indirectly by producers and consumers if the costs can be passed through. As strategies for gaining revenue, this approach is relatively noninvasive. It left the population alone.
Back in those days, however, the federal government barely existed as compared with today. More precisely, in real terms, the federal government in 1885 spent in inflation-adjusted dollars about 0.05 percent of what it spends today. Even then, people believed that it was too big and wanted it cut back to size.
Donald Trump has recently been schooling people in the history of revenue strategies and he is teaching something that people have not known. He has explained how this period of American history saw the greatest amount of economic growth we’ve ever seen. He is correct about that and he is also correct that this was the period of the tariff.
