Why did US federal tax revenue jump in 1815?

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Question: ? Why did US federal tax revenue jump in 1815? What happened here?

Short Answer:

War hurt trade, and trade was the largest revenue source for the US before 1812. War ends in early 1815. Trade returns, revenue returns.

Longer Answer:

In the early 1800's most federal revenue was based on trade(import and export taxes).

U.S. Federal Government Revenues: 1790 to the Present

Before the War of 1812, customs duties accounted for about 90% of federal government revenues.

During the War of 1812 the British imposed blockades on the eastern United States and thus cut off / reduced most of this revenue.

As you note the Treaty of Ghent ended the war of 1812 with the British signing it on December 24, 1814; It didn't official until signed by President Madison February 18, 1815. Marking the End of the War of 1812 and a boom on imports / exports and thus tax revenue.

The British Naval Blockade during the War of 1812

British Blockades began

  • February 6, 1813 – Chesapeake and Delaware Bays (“Mid-Atlantic”)
  • May 26, 1813 – New York harbor and Long Island Sound to New London
  • September 1, 1813 – North Carolina, South Carolina and Georgia (“Southern Coast”)
  • April 25, 1814 – Northern coastline from Rhode Island to Maine (“New England”)

According to the above source, these blockades remained in place until March of 1815, a few weeks after President Madison had signed the treaty of Ghent.

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