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Randa Abdelfattah and Ramteen Arablui

๐Ÿ‘ค Speaker
524 total appearances

Appearances Over Time

Podcast Appearances

Throughline
Al Capone and the transformation of the IRS

Everyone was convinced, I think, of Mellon's innocence, except perhaps for Franklin Roosevelt and Henry Morgenthau.

Throughline
Al Capone and the transformation of the IRS

It was politics driving this.

Throughline
Al Capone and the transformation of the IRS

Elmer showed him, okay, if you ask me to do this, I'll put my best agent on it and eventually showed the judge that the guy was innocent beyond a reasonable doubt.

Throughline
Al Capone and the transformation of the IRS

If the case is not there, he's going to make it known that the case is not there.

Throughline
Al Capone and the transformation of the IRS

But it is telling that if he was a different person who got that request and understood the subtext, like, we don't like this guy, find something on him.

Throughline
Al Capone and the transformation of the IRS

you know, what havoc that could have wreaked on the government.

Throughline
Al Capone and the transformation of the IRS

Oh, yeah.

Throughline
Al Capone and the transformation of the IRS

I mean, look, he even talks about it, that an investigation could destroy a person.

Throughline
Al Capone and the transformation of the IRS

And he preached to agents, follow strictly the rules of the Constitution and the laws that govern criminal investigations.

Throughline
Al Capone and the transformation of the IRS

That was what it meant to be a civil servant.

Throughline
Al Capone and the transformation of the IRS

In 1935, Roosevelt's starting to gear up for his first re-election campaign.

Throughline
Al Capone and the transformation of the IRS

That year, Roosevelt pushes through the Social Security Act and the so-called wealth tax, which raised the federal income tax on the highest income earners.

Throughline
Al Capone and the transformation of the IRS

Those in the very highest tax bracket had to pay 79%, and there was no war to fund this time.

Throughline
Al Capone and the transformation of the IRS

Now, full disclosure, that 79% only applied to one person.

Throughline
Al Capone and the transformation of the IRS

It was John D. Rockefeller Jr.

Throughline
Al Capone and the transformation of the IRS

Even J.P.

Throughline
Al Capone and the transformation of the IRS

Morgan Jr., who had a lot of money, didn't have that kind of money.

Throughline
Al Capone and the transformation of the IRS

So is that a meaningful tax?

Throughline
Al Capone and the transformation of the IRS

Well, it's not meaningful in the amount of revenue it's going to raise, but it might be meaningful in terms of the message that it sends.

Throughline
Al Capone and the transformation of the IRS

These kind of rhetorical attacks on the wealthy were terrific politics.