They say death and taxes are the only two certain things in life. Alas, this wasn't always the case. Well, at least for the income tax.
The History of Income Taxes
Our great nation came into existence in fits and starts. Following the revolt against the British, a federal government was elected and also the fun began. This "fun" undoubtedly brought about to the situation where not everyone could agree on what the US should stand for, much less what laws should be enacted. Consequently, there was no federal income tax for nearly 100 years. Ah, the good ole days!
If there was no income tax throughout this period, you are probably questioning how the government functioned. It did so by accumulating use and sales taxes. Taxes were incurred on liquor, tobacco and imports to mention just a few. Many people in our modern society would like to return to just such a system.
Contrary to popular notions, the first income tax was not put into law in the early 1900's. In fact, the first President to institute an income tax was Abraham Lincoln. In 1861, President Lincoln and Congress passed an income tax law to assist with funding the Civil War with the south. When the war came to an end, the tax was phased out. Imagine a tax being eliminated now? That ought to bring a tear of laughter to your eye.
The income tax as we all know it was first instituted in 1913. Congress passed a law creating a graduated tax rate of 1 to 7 percent on all income taxes. I can say truthfully and truthfully that I would kill to pay 1 % in taxes nowadays. Heck, I'm willing to take on the burden of paying 7 %!
In establishing the income tax system, the Constitution was revised to add a Sxteenth Amendment. This Amendment gave the federal government the right to collect taxes. The politicians primarily responsible for this were President Roosevelt and President Taft. I mention 2 Presidents because the bitter debate over the subject took some time to work out.
If you are looking to blame a particular political party, Presidents Roosevelt and Taft were both Republicans. Of course, the Democrats have not exactly made much of an work to repeal the tax, so both parties deserve a hit upside the head in my opinion. Nevertheless, this is how we came to be burdened by the income tax in the United states.
The History of Income Taxes
Our great nation came into existence in fits and starts. Following the revolt against the British, a federal government was elected and also the fun began. This "fun" undoubtedly brought about to the situation where not everyone could agree on what the US should stand for, much less what laws should be enacted. Consequently, there was no federal income tax for nearly 100 years. Ah, the good ole days!
If there was no income tax throughout this period, you are probably questioning how the government functioned. It did so by accumulating use and sales taxes. Taxes were incurred on liquor, tobacco and imports to mention just a few. Many people in our modern society would like to return to just such a system.
Contrary to popular notions, the first income tax was not put into law in the early 1900's. In fact, the first President to institute an income tax was Abraham Lincoln. In 1861, President Lincoln and Congress passed an income tax law to assist with funding the Civil War with the south. When the war came to an end, the tax was phased out. Imagine a tax being eliminated now? That ought to bring a tear of laughter to your eye.
The income tax as we all know it was first instituted in 1913. Congress passed a law creating a graduated tax rate of 1 to 7 percent on all income taxes. I can say truthfully and truthfully that I would kill to pay 1 % in taxes nowadays. Heck, I'm willing to take on the burden of paying 7 %!
In establishing the income tax system, the Constitution was revised to add a Sxteenth Amendment. This Amendment gave the federal government the right to collect taxes. The politicians primarily responsible for this were President Roosevelt and President Taft. I mention 2 Presidents because the bitter debate over the subject took some time to work out.
If you are looking to blame a particular political party, Presidents Roosevelt and Taft were both Republicans. Of course, the Democrats have not exactly made much of an work to repeal the tax, so both parties deserve a hit upside the head in my opinion. Nevertheless, this is how we came to be burdened by the income tax in the United states.
About the Author:
If you want more information on Expat Tax, don't read just rehashed articles online to avoid getting ripped off. Go here: Expat Tax