The History of Income Tax
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 the fun began .
This fun inevitably led to the situation where not everyone could agree on what the United States should stand for, much less what laws should be enacted .
As a result, there was no federal income tax for nearly 100 years .
Ah, the good ole days!
If there was no income tax during this period, you are probably wondering how the government functioned .
It did so by collecting use and sales taxes .
Taxes were charged 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 phased out now? That should bring a tear of laughter to your eye .
The income tax as we know it was first instituted in 1913 .
Congress passed a law establishing a graduated tax rate of one to seven percent on all income taxes .
I can say honestly and truthfully that I would kill to pay one percent in taxes these days .
Heck, I am willing to take on the burden of paying seven percent!
In establishing the income tax system, the Constitution was amended to add a 16th 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 two Presidents because the bitter debate over the subject took some time to work out.
If you’re looking to blame a particular political party, Presidents Roosevelt and Taft were both Republicans .
Of course, the Democrats haven’t exactly made much of an effort to repeal the tax, so both parties deserve a whack upside the head in my opinion .
Nonetheless, this is how we came to be burdened by the income tax in the United States.
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 the fun began .
This fun inevitably led to the situation where not everyone could agree on what the United States should stand for, much less what laws should be enacted .
As a result, there was no federal income tax for nearly 100 years .
Ah, the good ole days!
If there was no income tax during this period, you are probably wondering how the government functioned .
It did so by collecting use and sales taxes .
Taxes were charged 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 phased out now? That should bring a tear of laughter to your eye .
The income tax as we know it was first instituted in 1913 .
Congress passed a law establishing a graduated tax rate of one to seven percent on all income taxes .
I can say honestly and truthfully that I would kill to pay one percent in taxes these days .
Heck, I am willing to take on the burden of paying seven percent!
In establishing the income tax system, the Constitution was amended to add a 16th 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 two Presidents because the bitter debate over the subject took some time to work out.
If you’re looking to blame a particular political party, Presidents Roosevelt and Taft were both Republicans .
Of course, the Democrats haven’t exactly made much of an effort to repeal the tax, so both parties deserve a whack upside the head in my opinion .
Nonetheless, this is how we came to be burdened by the income tax in the United States.
The History Of Income Tax
Reviewed by Henda Yesti
on
July 04, 2018
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