A Conservative Case For Taxing The Rich: Lessons From History

The Forgotten Man: A Historical Journey Through Taxation and Politics

The concept of the "forgotten man" has been a powerful rhetorical tool in American politics, evoking images of ordinary citizens overlooked by policymakers. In a recent episode of Tax Notes Talk, historian Joseph J. Thorndike explored the origins and evolution of this phrase, tracing its journey from its conservative roots to its adoption by progressive leaders like Franklin D. Roosevelt. The discussion shed light on how the term has been weaponized by politicians across the ideological spectrum to justify their tax policies. Thorndike noted that President Trump’s use of the phrase during his 2016 campaign and presidency was a strategic move to co-opt a term deeply associated with Roosevelt, signaling a populist approach to governance. However, the phrase’s history reveals a more complex interplay between conservative and progressive ideologies.

The Conservative Roots of the "Forgotten Man"

The term "forgotten man" was first popularized by William Graham Sumner, a late-19th-century sociologist and social Darwinist. Sumner used the phrase in an 1883 essay to argue that the hardworking, middle-class individual was being unfairly burdened by taxes and social welfare programs designed to help the poor. He contended that these policies penalized the "deserving" working class while coddling the "undeserving" poor. Sumner’s argument was distinctly conservative, emphasizing individual responsibility and opposing government intervention in economic affairs. Thorndike highlighted how this framing of the "forgotten man" as a middle-class taxpayer facing an unfair tax burden has persisted in conservative discourse, often to justify tax cuts for the wealthy.

The Progressive Adoption of the "Forgotten Man"

Franklin D. Roosevelt famously co-opted the term during the 1932 presidential campaign, inverting its meaning to align with his progressive agenda. Roosevelt used the phrase to emphasize the struggles of working-class Americans and the need for government intervention to address economic inequality. His policies, including the New Deal, were framed as a commitment to the "forgotten man" at the bottom of the economic pyramid. Thorndike noted that Roosevelt’s use of the term marked a significant shift in its connotation, transforming it into a rallying cry for progressive taxation and social welfare programs. This ideological appropriation underscores the malleability of political rhetoric and its ability to serve competing agendas.

Roswell Magill: A Conservative Tax Expert with a Progressive Influence

Central to the discussion was the role of Roswell Magill, a tax expert who served in both Republican and Democratic administrations. Magill, a conservative lawyer, played a key role in shaping Roosevelt’s tax policies, advocating for a more progressive tax system. He believed that the wealthy should bear a greater tax burden to ensure fairness and adequacy of revenue. Thorndike described Magill as a paradoxical figure—steeped in conservative values but willing to support higher taxes on the rich to fund social programs. Magill’s work laid the groundwork for the modern tax system, emphasizing the importance of a broad tax base and progressive rates. His contributions highlight the often-overlooked role of conservative intellectuals in shaping progressive tax policies.

Magill’s Vision for Tax Reform

Magill’s ideas about taxation were rooted in a commitment to fairness and fiscal responsibility. He argued that the tax system should be simplified by closing loopholes and broadening the tax base, ensuring that the wealthy paid their fair share. Magill also believed that taxes should be visible to the public, as awareness of tax burdens would encourage greater accountability in government spending. Thorndike noted that Magill’s approach to tax reform was ahead of its time, prefiguring modern debates about inequality and the need for a more equitable tax code. Despite his conservative roots, Magill’s vision for taxation remains relevant in contemporary discussions about progressive taxation and fiscal sustainability.

Lessons for Today: The Enduring Relevance of Magill’s Ideas

The podcast underscored the enduring relevance of Magill’s ideas in the context of modern tax policy. Thorndike argued that Magill’s emphasis on base-broadening and progressive taxation offers valuable lessons for addressing today’s fiscal challenges, including rising deficits and income inequality. However, he noted that the political landscape has shifted dramatically since Magill’s time. Contemporary conservatives are far less willing to entertain higher taxes on the wealthy, and the debate over taxation has become increasingly polarized. Despite these challenges, Thorndike suggested that Magill’s legacy reminds us of the importance of bipartisanship and intellectual honesty in shaping tax policy.

The Forgotten Man in the Trump Era

Looking ahead to President Trump’s second term, Thorndike cautioned that the administration’s tax policies are unlikely to align with the progressive ideals of the "forgotten man" as envisioned by Roosevelt or Magill. While Trump has invoked the phrase to appeal to working-class voters, his tax agenda has consistently favored the wealthy, exacerbating inequality. Thorndike emphasized the need for a more equitable tax system that prioritizes the needs of ordinary Americans, drawing on the historical lessons of figures like Roosevelt and Magill. By revisiting the origins and evolution of the "forgotten man," the podcast reminds us of the importance of rhetoric in shaping policy and the ongoing struggle to balance fairness and fiscal responsibility in taxation.