A Short Timeline of Taxation of the USA, Section One
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
From 1868 until 1913, almost ninety percent of the federal government’s revenue was gotten from taxes on alcohol and tobacco. During the Civil War there was a short income tax, but it was not until 1913 when the sixteenth Amendment was passed and enabled Congress to tax incomes “from whatever sources attained.” The first 1040’s were due on March 1, 1914. There wasn’t any money withheld from paychecks and none was sent in with the return. Every taxpayer’s taxes were calculated by IRS field agents and a bill sent to the taxpayer on June 1st.
1766 – Leaders of the colonies met to extinguish British taxes in place by the Stamp Act. This Stamp Act Congress, as it was named, marked the start of the American independence movement and the birth of the modern U.S.
1782 – The first Congress under the Articles of Confederation met. This Congress had no ability to tax the people.
1789 – Americans gave a new Congress taxing powers. Without taxing powers, the initial Congress of the United States barely lasted 7 years before being dubbed a failure; the second Congress, granted taxation powers, is still going strong after almost 300 years. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!
1792 – Alexander Hamilton coerces Congress into passing an excise tax on whiskey to increase revenue and curb alcohol consumption. On the western frontier whiskey was the basic mode of exchange, and the twenty-five percent tax was harsh. By 1794 the region was in open revolt. The forerunner of the IRS was spawned to give the tax enforcement. Go here if you want help from a modern-day CPA firm in Raleigh, NC.
1832 – The national debt remaining from the Revolutionary War and the War of 1812 is paid off. The South sees no reason to continue high import taxes that increase prices for Southern consumers and promote industrial monopolies in the North.
1850 – John C. Calhoun of South Carolina warns Congress that the South might secede from the Union due to the fact that the overly oppressive taxing in the South raised funds that were spent in the North, causing a massive change in money from the South to the North.
Stay tuned for Parts 2 and 3 of the Timeline of US Tax Policy!
http://www.marccpa.com/
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