James Madison Quotes
Measures should be enacted which, without violating the rights of property, would reduce extreme wealth towards a state of mediocrity, and raise extreme indigence towards a state of comfort.
Madison, James. "Parties." National Gazette, 23 Jan. 1792. The Papers of James Madison, vol. 14, edited by Robert A. Rutland et al., University Press of Virginia, 1983, p. 197.
At the time of this quotation, the nation had gone through more than 3 decades of enormous increase in prosperity for the wealthy, and modest gains for the highly skilled, technically trained workers. However, correcting for inflation, average salaries did not increase at all. The middle class was particularly hard hit. Only 20 percent of the population benefitted from the growth at all; however, the 1 percent had rarely prospered more. Kenworthy’s principle did not apply for this period of American history.
An income tax had been instituted during the Civil War but had lapsed. Existing taxes were all excise or head taxes—very regressive. Later there was a political movement to bring back the income tax with the intention of taxing all income equally. There was a titanic struggle which culminated in a Constitutional Amendment allowing the income tax. None of the original politicians, for or against, the income tax could never imagine an income tax that would charge lower rates for investment income. That was the entire purpose of the income tax at the beginning—to tax investment (unearned) income. The “capital gains tax” was the creative way of the rich getting back some of what they thought the lost when the income tax was instituted.
James Madison Jr. was an American statesman, diplomat, expansionist, philosopher, and Founding Father who served as the fourth president of the United States from 1809 to 1817. He is hailed as the "Father of the Constitution" for his pivotal role in drafting and promoting the Constitution of the United States and the United States Bill of Rights. He co-wrote The Federalist Papers, co-founded the Democratic-Republican Party, and served as the fifth United States Secretary of State from 1801 to 1809.