A Short Timeline of Taxation Practices of the United States, Section One
Posted by myarticlenetwork on February 9, 2010
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
Between 1868 to 1913, about ninety percent of the national government’s revenue was gotten from taxes on alcohol and tobacco. While the Civil War was occurring there was a brief income tax, but it was not until 1913 that the sixteenth Amendment permitted Congress to tax incomes “from whatever sources derived.” The initial 1040’s were due on March 1, 1914. No money was taken from paychecks and none was sent in with the return. Each taxpayer’s computations were checked by IRS field agents and a bill mailed to the taxpayer on June 1st.
1766 – Colony leaders got together to extinguish British taxes in place by the Stamp Act. The Stamp Act Congress, as it was called, was the beginning of the American independence movement and the origin of the modern U.S.
1782 – The first Congress under the Articles of Confederation formed. This Congress had no taxing powers.
1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the initial Congress of the United States scantly lasted seven years before being dubbed a failed attempt; the 2nd Congress, granted taxation powers, is still going strong after almost 300 years. If you’re 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 raise revenue and curb alcohol consumption. On the western frontier whiskey was the basic mode of exchange, and the 25% tax was a bit difficult to deal with. By 1794 the area was in open rebellion. The father of the Internal Revenue Service was created to enforce the tax. Go here if you want help from a modern-day CPA firm in Raleigh, NC.
1832 – The national debt that remained after the Revolutionary War and the War of 1812 is finally accounted for and paid. The South sees no reason for continued high import taxes that increase prices for Southern consumers and promote industrial monopolies in the North.
1850 – John C. Calhoun of South Carolina tells Congress that the South might leave the Union because heavy taxation in the South raised funds that were spent in the North, causing a great 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/
