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%

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?