"Tax and spend" is a term used in politics meaninggovernment policy to increase or collecttaxes for the purpose of increasingpublic spending.[1] The term is commonly used as criticism;[2] some have embraced the label.[3][4]
The 1936United States Supreme Court caseUnited States v. Butler grappled with the question of the constitutionality of tax and spend policy in the United States, with the Court majority concluding that "the power to tax and spend includes the power to relieve a nationwide economic maladjustment by conditional gifts of money"..[5]
The term, in the form "taxing and spending", is attested from 1928.[1] It was used, in the form "spend and tax", in the 18 October 1938 edition ofThe New York Times,[6] in a profile ofFranklin D. Roosevelt's advisorHarry Hopkins, the administrator of theWorks Progress Administration (WPA), a key agency of Roosevelt'sNew Deal program, written byArthur Krock, with the subheading "Spend and Tax, [Hopkins'] Motto". The term appeared again in a later 1938 report inThe New York Times, written by Krock, quoting Hopkins. He wrote that "[Hopkins] met a criticism of this sinister combination by saying: 'We will spend and spend, and tax and tax, and elect and elect.'"[7] According to Krock, the "sinister combination" was Roosevelt, Hopkins, United States Postmaster GeneralJames Farley, and New Jersey Democratic political bossFrank Hague.[7]
Two weeks later, Hopkins and Krock argued the point in duelling letters to the editor ofThe New York Times. First Hopkins flatly denied he had ever laid out the "tax, spend, elect" formulation, but Krock asserted that "I used and printed the quotation after careful verification because, while it fitted completely into Mr. Hopkins's political philosophy as I have understood it, I wanted to be certain of the language."[failed verification] Krock also revealed that he had spoken with witnesses who claimed to have heard Hopkins make the comment at the Empire Race Track inYonkers, New York, including a "reputable citizen" who was "in lighter hours, a playmate of Mr. Hopkins".[8]
Tax and spend is an umbrella term that can refer to various government policies or programs which raise revenues in order to fund government programs. For example, many local jurisdictions, particularly in the raise revenues for specific programs throughfinancial referendums to voters. Referendums on tax and spend programs often raise revenues in the United States throughproperty orsales tax to fund public education,[9] orpublic works projects, such as transportation infrastructure, housing,[10] or public safety programs.[11]
Throughout theGreat Depression, opponents of Roosevelt's New Deal tax and spend programs criticized the agenda. The 1936 caseUnited States v. Butler ultimately gave Roosevelt authority to tax and spend under theTaxing and Spending Clause of the United States Constitution.[5]
In a 1989 opinion column forThe New York Times, then-chairman of theNational Republican Congressional Committee,Guy Vander Jagt, wrote that "Tax-and-Spend Democrats Never Learn",[12] citingGeorge H. W. Bush's "no new taxes" slogan to critique tax and spend policies advocated by someDemocrats. A 2019 article inThe Washington Times quotesJim Manley, aDemocratic strategist, as saying that "Democrats used to be scared of [tax and spend], but not anymore", with the author adding that "Democrats are convinced that the Reagan-era epithet 'tax-and-spend liberals' is no longer a candidate killer."[13]
The term is used similarly in the United Kingdom,[14][15] as well as in Australia.[16]