In 1936, as Franklin Delano Roosevelt prepared for his second presidential term, he introduced a progressive tax plan known as the Revenue Act of 1935, or FDR’s “Wealth Tax.”
This plan aimed to fund the New Deal by taxing the rich, particularly targeting millionaires making over $1 million a year, when many Americans struggled during the Great Depression.
Despite opposition from the millionaire class, who decried Roosevelt’s “Soak the Rich” strategy, the plan was signed into law and became a central part of FDR’s reelection campaign.
Biden (Credits: The Nation)
In a famous speech at Madison Square Garden, Roosevelt acknowledged the wealthy elite’s disdain for him, declaring, “I welcome their hatred.”
The election of 1936 resulted in a landslide victory for Roosevelt, with over 60 percent of the popular vote and 98 percent of the Electoral College.
His victory gave Democrats and left-leaning independents a significant majority in both the Senate and House, providing Roosevelt with a strong mandate to govern boldly.
Biden (Credits: Science)
Now, 88 years later, President Joe Biden is proposing a similar tax plan in his budget for Fiscal Year 2025. Under Biden’s plan, billionaires would be required to pay at least 25 percent of their income in taxes, aiming to address the inequities in the current tax system that allow the wealthiest Americans to pay lower tax rates than ordinary wage earners.
Biden’s proposal comes at a time of growing wealth inequality and is framed as a way to ensure that the wealthiest Americans pay their fair share. The plan echoes Roosevelt’s “Wealth Tax” in its focus on taxing the rich to fund programs that benefit the broader population.
As Biden’s budget plan moves forward, it remains to be seen how the public will receive it and whether it will face similar opposition from the wealthy elite. However, history has shown that bold tax plans targeting the rich can resonate with voters and provide a mandate for progressive governance.
