A Brief Timeline of Tax Law of the United States, Chapter One
Posted by Knowledge Guy in Business and Commerce, tags: 16th Amendment, Accountant, Alcohol Consumption, Alexander Hamilton, American Independence, Articles Of Confederation, Bookkeeping, Congress Of The United States, Cpa, Excise Tax, Forerunner, Gilfillan, Income Tax, Independence Movement, marc gilfillan, National Debt, National Government, NC, Paychecks, raleigh, Raleigh Nc, Stamp Act Congress, tax, Tax Expert, Tax Preparation, Tax Return, Taxes, Traditional Mode, Western Frontier, WhiskeyW. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
From 1868 to 1913, about 90% of the national government’s income was derived from taxes on whiskey and tobacco. During the Civil War the government instituted a short income tax, but it was not until 1913 that the 16th Amendment was passed and enabled Congress to tax incomes “from whatever sources derived.” The initial 1040’s were due on March 1, 1914. There wasn’t any money withheld from paychecks and no money was sent away with the return. Each taxpayer’s taxes were checked by IRS field agents and a bill mailed to the taxpayer on the first of June.
1766 – Colony leaders got together to protest British taxes in place by the Stamp Act. This Stamp Act Congress, which it was named, was the start of the American independence movement and the origin of the United States.
1782 – The first Congress under the Articles of Confederation met. 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 prior to being declared a failed attempt; the second Congress, with 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 persuades Congress into passing an excise tax on whiskey to increase earned income for the government and steady the increase in alcohol consumption. In the western frontier whiskey was the traditional mode of exchange, and the twenty-five percent tax was harsh. By 1794 the region was openly in rebellion. 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 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 increase the number of industrial monopolies in the North.
1850 – John C. Calhoun of South Carolina warns Congress that the South might leave the Union because the overly oppressive taxation in the South raised funds that ended up in the North, causing a massive shift in money from the South to the North.
Stay tuned for Parts 2 and 3 of the Timeline of US Tax Policy!
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