Funding_for_War

Funding for War How the War was Funded I. The war was funded through the American public by borrowing, taxing, and selling treasury bonds to the Federal Reserve. World War II lead to the modern American tax system i. Examples, War bonds, victory taxes, new deal, modern income taxes and withholding taxes. 1. War bonds- had face values as low as 50 cents. The printing of money was authorized to pay for the bonds 2. After the war a victory tax had to be paid if income exceeded $624. This worked very well since the amount of people that made income exceeding $624 jumped from 7 million to 42 million. 3. New deal was created by Roosevelt administration. This taxed the rich, since they were not contributing enough money to support the federal government. After the senate and the congress override the presidential veto, Modern income taxes was born through the need for money and matured at this time. 4. Withholding taxes- employers deducting taxes. Before individual taxpayers had been sending money directly to the IRS. 5. Magazines, entertainers, and films urged citizens to participate by marketing war bonds and income taxes to show patriotism. II. World War II dominating employment by bringing demand for labor, i. Examples 1. Armed forces and Civilian employment increased 2. The total labor force war, taxes, percent, money, million, income, examples, bonds, made, big, since, people, modern, ii, employment, created, companies, businesses, after, victory, time, tax, set, senate, rose, related, production, price, plants, northern, military, migration, men, manufacturing, labor, jobs