"Here is my principle: Taxes shall be levied according to ability to pay. That is the only American principle"

Franklin D. Roosevelt’s statement reflects a foundational tenet of progressive taxation and social justice in the American context. When Roosevelt asserts that “taxes shall be levied according to ability to pay,” he emphasizes the ethical basis for distributing the burden of public expenses. The core of his argument is that those who have greater financial means should bear a proportionately larger share of the tax burden. This view stands in contrast to regressive or flat taxation schemes, where all individuals pay the same amount or rate regardless of their economic circumstances.

The distinction Roosevelt draws is deeply rooted in democratic values and the idea of fairness. In a society where economic disparities exist, taxing based on ability recognizes that uniform rates would impose a much greater strain on the poor and middle class than on the wealthy. By adjusting obligations according to means, the tax system becomes a tool both for raising revenue and for promoting social cohesion, mitigating extremes of wealth and poverty that can threaten democratic stability.

Roosevelt goes further by characterizing this as “the only American principle,” underscoring not only its practical utility but also its significance in the American moral and political tradition. This elevates the idea above mere fiscal policy, casting it as integral to the nation’s identity. He implies that fairness, opportunity, and shared responsibility are at the heart of American ideology and that the tax system should embody these ideals.

This philosophy was central to the New Deal era, guiding policies intended to combat the Great Depression and to extend economic security to all citizens. Progressive taxation, social insurance, and public investment were seen as mechanisms to reinforce democracy, provide equality of opportunity, and ensure that the nation’s prosperity served the common good. Roosevelt’s assertion remains a touchstone in debates about tax policy and social justice, inviting reflection on the values that underpin public finance and the responsibilities individuals have to their society.