The ideology of Progressivism that peaked in the early years of the 20th century brought with it the 16th amendment, which allowed the federal government to tax incomes, and the 17th amendment, which mandated direct elections of Senators. Both were ratified in 1913. The 16th amendment provided...

When tax shares can be included in political platforms, there will be a bias toward more government spending. This bias is the result of the fact that demand curves slope downward. Political parties can compete for votes by offering pivotal voters lower tax shares, but when they do, a lower...