South Dakota became the first U.S. state to abolish the common-law Rule Against Perpetuities, ending centuries of legal precedent designed to prevent families from holding wealth in trusts forever. The legislature enacted SDCL Section 43-5-8 declaring “The common-law rule against perpetuities …
South Dakota Legislaturetax-evasionwealth-concentrationregulatory-captureinstitutional-capturefinancial-secrecy
A new brokerage industry enabling margin stock purchases allowed ordinary investors to buy corporate equities with only 10 percent down, borrowing the rest with stocks serving as collateral for loans. By August 1929, brokers routinely lent small investors more than two-thirds of the face value of …
Federal ReserveGoldman SachsInvestment Trustsfinancial-deregulationspeculationsystematic-corruptionwealth-concentration
President Calvin Coolidge signs the Revenue Act of 1926, the crowning achievement of Treasury Secretary Andrew Mellon’s multi-year campaign to restructure federal taxation in favor of the wealthy. The act slashes the top marginal income tax rate from 46 percent to 25 percent on incomes over …
Andrew MellonCalvin CoolidgeU.S. CongressRepublican Partytax-policywealth-concentrationinstitutional-capturemellon-plan
President Calvin Coolidge signs the Revenue Act of 1924, the second installment of Treasury Secretary Andrew Mellon’s systematic campaign to slash taxes on the wealthy. The act reduces the maximum income tax rate from 58 percent to 46 percent on incomes over $500,000 (raised from the previous …
Andrew MellonCalvin CoolidgeU.S. CongressRepublican Partytax-policywealth-concentrationinstitutional-capturemellon-plan
Treasury Secretary Andrew Mellon secured passage of the first Republican tax reduction following the 1920 landslide, dropping the top marginal rate from 73 to 58 percent while introducing preferential treatment for capital gains at 12.5 percent. The act repealed the excess profits tax imposed during …
Andrew MellonWarren G. HardingRepublican Partytax-policywealth-concentrationinstitutional-capturesystematic-corruption
The Supreme Court’s order to break Standard Oil into 34 separate companies produced a profound paradox: the breakup made John D. Rockefeller vastly richer while ultimately failing to prevent reconsolidation. Shareholders in Standard Oil received proportional stakes in each successor …
John D. RockefellerStandard Oil CompanyU.S. Supreme Courtantitrustcorporate-powerwealth-concentrationmonopolyenforcement-limitations