USA taxes, the history

Winetalk.com · 12-29-2005

from http://finance.yahoo.com/

Taxes have always been a controversial topic in America since the Boston Tea Party in 1773 which was in protest of a special tax on tea imposed by the British Parliament.

After the Revolutionary War the government was able to fund itself without using an individual income tax. The main revenue streams came from tariffs, excise taxes and property taxes. The government did impose a quasi-estate tax in 1797 when it required a federal stamp on wills to help offset the costs of a naval conflict with France.
In 1861 as the Federal government struggled to finance the Civil War, the first personal income tax was implemented. The tax was a simple 3% on all personal income over $800 ($17,837 in current Dollars). The Internal Revenue Act of 1862 raised the tax rate on income over $10,000 to 5% and also imposed an inheritance tax. By 1866 the office of the Commissioner of Internal Revenue collected more than $310M, but with the end of the Civil War the government focused taxing of liquor and tobacco and the personal income tax expired in 1872.

In 1894, Congress created a new income tax, but the next year the Supreme Court ruled the tax unconstitutional. The 2% tax on corporate and personal income was ruled illegal because the court believed it represented a direct tax on property which, according to the Constitution, had to be levied in proportion to the states' population.

Finally, in 1913, the 16th Amendment to the Constitution was ratified and the Federal income tax became the law of the land. In 1914, the first year of the income tax, only 357,000 citizens were impacted, accounting for $28M in taxes paid. Since 1913, when the highest tax rate was 7% on incomes above $500,000, income tax rates have fluctuated wildly. During the Depression and World War II, the income tax rate on those with the highest incomes reached its apex at an astounding 91%

JoesHO · 12-29-2005

Read my lips NO NEW TAXES

our economy is strong, and the deficit is shrinking.

Hell Puppy · 12-30-2005

The problem is we have too much government. And under the current structure the government has no incentive to reduce it's size and instead is filled with politicians more than willing to create more government in order to gain favor with their voters.

And this isn't a democrat vs. republican or liberal vs. conservative thing. GW Bush hasn't many spending plans he hasn't liked. Last President we had who had any concept of what the founding fathers really intended with the constitution was Reagan. He reduced the size of government and put a lot of power back with the states where it belongs.

Fact of the matter is most people are stupid and want a hand out. They have no idea what they actually pay in taxes because they never see it. Dont believe it? Wait til March or so and ask the average fartknocker on the street what he paid in taxes....watch how many light up with a smile and say "nothing, i got some back!". These same dipshits also have no sense of personal responsibility and want the government to solve all problems.

I say bring on the fair tax plan.

If we cant have that, let's at least get rid of tax withholding. That was a temporary measure put in place by FDR for World War II. It hasn't ended yet. Imagine the reaction to new taxes if EVERYONE had to cut a check for one lump sum on April 15th each year.

12-29-2005	#1
Winetalk.com Prostate Examiner I quoff fine wine at corkd.com Join Date: Oct 2002 Location: good 'ole USA Posts: 21,018	USA taxes, the history from http://finance.yahoo.com/ Taxes have always been a controversial topic in America since the Boston Tea Party in 1773 which was in protest of a special tax on tea imposed by the British Parliament. After the Revolutionary War the government was able to fund itself without using an individual income tax. The main revenue streams came from tariffs, excise taxes and property taxes. The government did impose a quasi-estate tax in 1797 when it required a federal stamp on wills to help offset the costs of a naval conflict with France. In 1861 as the Federal government struggled to finance the Civil War, the first personal income tax was implemented. The tax was a simple 3% on all personal income over $800 ($17,837 in current Dollars). The Internal Revenue Act of 1862 raised the tax rate on income over $10,000 to 5% and also imposed an inheritance tax. By 1866 the office of the Commissioner of Internal Revenue collected more than $310M, but with the end of the Civil War the government focused taxing of liquor and tobacco and the personal income tax expired in 1872. In 1894, Congress created a new income tax, but the next year the Supreme Court ruled the tax unconstitutional. The 2% tax on corporate and personal income was ruled illegal because the court believed it represented a direct tax on property which, according to the Constitution, had to be levied in proportion to the states' population. Finally, in 1913, the 16th Amendment to the Constitution was ratified and the Federal income tax became the law of the land. In 1914, the first year of the income tax, only 357,000 citizens were impacted, accounting for $28M in taxes paid. Since 1913, when the highest tax rate was 7% on incomes above $500,000, income tax rates have fluctuated wildly. During the Depression and World War II, the income tax rate on those with the highest incomes reached its apex at an astounding 91% __________________ why dogs sniff each other butts?

12-29-2005	#2
JoesHO Members Want to see your own Advertising Here! Join Date: Jan 2004 Posts: 5,085	Re: USA taxes, the history Read my lips NO NEW TAXES our economy is strong, and the deficit is shrinking. __________________ AEBN THE GLOBAL LEADER IN ADULT EVOLUTION something FIT this way comes!

12-30-2005	#3
Hell Puppy Fat Fucking Nobody Want to see your own Advertising Here! Join Date: Oct 2002 Posts: 6,523	Re: USA taxes, the history The problem is we have too much government. And under the current structure the government has no incentive to reduce it's size and instead is filled with politicians more than willing to create more government in order to gain favor with their voters. And this isn't a democrat vs. republican or liberal vs. conservative thing. GW Bush hasn't many spending plans he hasn't liked. Last President we had who had any concept of what the founding fathers really intended with the constitution was Reagan. He reduced the size of government and put a lot of power back with the states where it belongs. Fact of the matter is most people are stupid and want a hand out. They have no idea what they actually pay in taxes because they never see it. Dont believe it? Wait til March or so and ask the average fartknocker on the street what he paid in taxes....watch how many light up with a smile and say "nothing, i got some back!". These same dipshits also have no sense of personal responsibility and want the government to solve all problems. I say bring on the fair tax plan. If we cant have that, let's at least get rid of tax withholding. That was a temporary measure put in place by FDR for World War II. It hasn't ended yet. Imagine the reaction to new taxes if EVERYONE had to cut a check for one lump sum on April 15th each year.