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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

entered the war...

Throughline
Al Capone and the transformation of the IRS

The income tax proved vital.

Throughline
Al Capone and the transformation of the IRS

There's this tremendous need to fund the government, to fight World War I. The income tax gets much bigger very quickly.

Throughline
Al Capone and the transformation of the IRS

The top rate went from 6% to like 77%.

Throughline
Al Capone and the transformation of the IRS

77%.

Throughline
Al Capone and the transformation of the IRS

When I say top rates, that was for people who were making a lot of money.

Throughline
Al Capone and the transformation of the IRS

That's a huge portion.

Throughline
Al Capone and the transformation of the IRS

Some of the people being taxed the most were ironically making that money from the war itself.

Throughline
Al Capone and the transformation of the IRS

The media labeled them war profiteers, businessmen that were providing the military equipment, the goods, everything needed for the war.

Throughline
Al Capone and the transformation of the IRS

And they became some of the most wealthy people in the country.

Throughline
Al Capone and the transformation of the IRS

People like Pierre S. DuPont, Charles M. Schwab, and J.P.

Throughline
Al Capone and the transformation of the IRS

Morgan Jr.

Throughline
Al Capone and the transformation of the IRS

And some of these so-called war profiteers... They had the temerity to bribe tax collectors and have them turn a blind eye and not pay taxes.

Throughline
Al Capone and the transformation of the IRS

And it became an embarrassment for Treasury...

Throughline
Al Capone and the transformation of the IRS

After the war ended in 1918, the income tax rates were significantly reduced.

Throughline
Al Capone and the transformation of the IRS

But those wealthy tax evaders were getting off scot-free.

Throughline
Al Capone and the transformation of the IRS

So officials at the Treasury Department were trying to think of a way to improve the image of the IRS.

Throughline
Al Capone and the transformation of the IRS

How could it get the kind of reputation the Postal Service had?

Throughline
Al Capone and the transformation of the IRS

And the light bulb goes off.

Throughline
Al Capone and the transformation of the IRS

They went to the Postal Service and took one of their senior leaders by the name of Daniel Roper.