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Essay / Alexander Hamilton Report On Taxation Summary - 1077
Proposed in 1791, Secretary of the Treasury Alexander Hamilton wrote his Report on Manufactures with the aim of establishing economic maneuvers designed to, in the long run, improve American credit by encouraging the expansion of American industries and taxation. Hamilton's initiatives were ultimately inspired by his federalist program supported by the Washington administration. The report primarily emphasizes the importance of developing the nation's capacity to produce and specialize in particular crafts for the mutual benefit of the entire nation, not just upper-class white citizens. Hamilton hypothesized in this report that if America followed his series of actions, there would be growth within America. In the past, colonial America was staunchly opposed to taxes. However, to be fully established as a nation that can be recognized by a superpower such as Britain or Spain, America must make money as a nation, not just as individual states . The first step is to impose duties on foreign items. This, designed by Hamilton, was to benefit American manufacturers. To further promote the American market, he advocated “bans on competing items” (Hamilton, 16). He later adds that by taxing foreign products more than American products of the same quality, people should be more inclined to buy the product made in the United States. So while the tax exists to raise revenue to reduce the national debt, it will also encourage the purchase of domestically manufactured goods. Hamilton introduced the idea of bonuses, and later, the use of a specific type of bonus for those who have “superiority…or skill” in a trade (Hamilton, 17). So far, Hamilton has been blunt with drastic tax measures. In his seventh point, he mentions the “disadvantages of duties” (Hamilton, 18). Just as in modern America not all items are taxed, Hamilton takes the time to discuss exceptions to clarify which products will not be taxed. In its eighth point, it is about once again encouraging home manufacturing and, of course, the use of machines. The last points