The Federal Tariff of 1828 placed a high tariff on imported goods which was very damaging to the South because their economy relied on imports as they did not have much industry.
Spurred on by the proclamations of Vice President John C. Calhoun who declared that States did not have to comply with all Federal law, South Carolina passed a law that theoretically allowed it to nullify any Federal law that it deemed to be damaging to its interest.
President Jackson threatened to use soldiers to ensure compliance to Federal law but the crisis was averted due to negotiations led by Henry Clay.
About 50 percent of federal revenue comes from individual income taxes, 7 percent from corporate income taxes, and another 36 percent from payroll taxes that fund social insurance programs . The rest comes from a mix of sources.
