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W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

From 1868 until 1913, about 90% of the federal government’s income was derived from taxes on whiskey and tobacco. While the Civil War was going on the government instituted a short income tax, but it was not until 1913 when the 16th Amendment permitted 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 none was sent in with the return. Each taxpayer’s taxes were calculated by IRS field agents and a bill sent to the taxpayer on June 1st.

1766 – Colonial leaders got together to protest British taxes under the Stamp Act. This Stamp Act Congress, which it was called, marked 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 did not have any taxing powers.

1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the initial Congress of the U.S. scantly survived seven years before being dubbed a failed attempt; the 2nd Congress, with taxing powers, is currently 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 persuades Congress to pass an excise tax on whiskey to raise earned income for the government and steady the increase in drinking. On the western frontier alcohol was the traditional mode of exchange, and the 25% tax was a bit difficult to deal with. By 1794 the area was in open revolt. The forerunner of the Internal Revenue Service was created to give the tax enforcement. Go here if you want help from a modern-day CPA firm in Raleigh, NC.

1832 – The national debt that remained from 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 the price on goods for Southern consumers and promote industrial monopolies in the North.

1850 – John C. Calhoun of South Carolina warns Congress that the South could leave the Union due to the fact that heavy taxing of the South raised funds that ended up in the North, creating a massive change in wealth from the South to the North.

Stay tuned for Parts 2 and 3 of the Timeline of US Tax Policy!

http://www.marccpa.com/

W. 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!

http://www.marccpa.com/