The Second New Deal and the Redefining of Liberalism, 1935–1938

As attacks on the New Deal increased, Roosevelt and his advisors moved politically to the left. Historians have labeled this shift in policy the Second New Deal. Roosevelt now openly criticized the “money classes,” proudly stating, “We have earned the hatred of entrenched greed.” He also decisively countered the rising popularity of Townsend, Coughlin, and Long by adopting parts of their programs. The administration’s Revenue Act of 1935 proposed a substantial tax increase on corporate profits and higher income and estate taxes on the wealthy. When conservatives attacked this legislation as an attempt to “soak the rich,” Congress moderated its taxation rates. But FDR was satisfied. He had met the Share Our Wealth Society’s proposal with a tax plan of his own.