 Revenue from tariffs was then a major source of income for the federal government . There was no federal income tax and tariff debates were passionate ; the 1888 presidential election had them as a major issue . Many Democrats supported a tariff for revenue only , that is , the purpose of tariffs should be to finance government , not to encourage American manufacturers . McKinley disagreed with that and sponsored the McKinley Tariff of 1890 . This act , passed by the Republican @-@ dominated Congress , raised rates on imports to protect American industry . McKinley 's tariff proved unpopular among many people who had to pay the increased prices , and was seen as a reason not only for his defeat for re @-@ election to Congress in 1890 , but for the Republicans losing control of both House and Senate in that year 's midterm elections . Nevertheless , McKinley 's defeat did not , in the end , damage his political prospects , as the Democrats were blamed for gerrymandering him out of his seat . 
