Why did Herbert Hoover raise taxes?

Answer 1

Herbert Hoover raised taxes primarily as a response to the Great Depression, aiming to address the federal budget deficit and stabilize the economy. In 1932, he signed the Revenue Act, which increased income tax rates for higher earners and expanded the tax base. This decision was controversial, as many believed it would further depress consumer spending and worsen the economic downturn. Hoover's intention was to restore confidence in government finances, but the move was met with significant criticism.