Page "McKinley Tariff" Paragraph 4

In addition to the protectionist debate, politicians were also concerned about the high revenue accruing from tariffs.

After the Civil War, tariffs remained elevated to raise revenue and cover the high costs of war.

However, in the early 1880s, the federal government was running a large surplus.

Both parties agreed that the surplus needed to lessen, but disagreed about whether to raise or lower tariffs to accomplish the same goal.

The Democrats ' hypothesis stated that tariff revenue could be reduced by reducing the tariff rate.

Conversely, Republicans believed that by increasing the tariff, imports would be lessened, and total tariff revenue would drop ( See Laffer curve ).

This point, along with the dialogue surrounding protectionism, created what would be known as “ The Great Tariff Debate of 1888 .”