The History of Income Tax

They say death and taxes are the only two certainwith the south. When the war came to an end, the tax
things in life. Alas, this wasn't always the case. Well, atwas phased out. Imagine a tax being phased out now?
least for the income tax.That should bring a tear of laughter to your eye.
The History of Income TaxesThe income tax as we know it was first instituted in
Our great nation came into existence in fits and starts.1913. Congress passed a law establishing a graduated
Following the revolt against the British, a federaltax rate of one to seven percent on all income taxes. I
government was elected and the fun began. This "fun"can say honestly and truthfully that I would kill to pay
inevitably led to the situation where not everyone couldone percent in taxes these days. Heck, I am willing to
agree on what the United States should stand for,take on the burden of paying seven percent!
much less what laws should be enacted. As a result,In establishing the income tax system, the Constitution
there was no federal income tax for nearly 100 years.was amended to add a 16th Amendment. This
Ah, the good ole days!Amendment gave the federal government the right to
If there was no income tax during this period, you arecollect taxes. The politicians primarily responsible for
probably wondering how the government functioned. Itthis were President Roosevelt and President Taft. I
did so by collecting use and sales taxes. Taxes weremention two Presidents because the bitter debate
charged on liquor, tobacco and imports to mention justover the subject took some time to work out.
a few. Many people in our modern society would likeIf you're looking to blame a particular political party,
to return to just such a system.Presidents Roosevelt and Taft were both Republicans.
Contrary to popular notions, the first income tax wasOf course, the Democrats haven't exactly made much
not put into law in the early 1900's. In fact, the firstof an effort to repeal the tax, so both parties deserve
President to institute an income tax was Abrahama whack upside the head in my opinion. Nonetheless,
Lincoln. In 1861, President Lincoln and Congress passedthis is how we came to be burdened by the income
an income tax law to assist with funding the Civil Wartax in the United States.