Dec
28
2009
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 revenue was gotten from tax on whiskey and tobacco. During the Civil War the government instituted a short income tax, but it was not until 1913 when the sixteenth Amendment permitted Congress to tax incomes “from whatever sources attained.” The first 1040’s were due on March 1, 1914. There was not any money withheld from paychecks and no money was sent in with the return. Every taxpayer’s computations were calculated by IRS field agents and a bill sent to the taxpayer on the first of June.
1766 - Leaders of the colonies got together to protest British taxes in place by the Stamp Act. The Stamp Act Congress, as it was called, marked the start of the American independence movement and the beginning of the United States.
1782 - The first Congress under the Articles of Confederation met. This Congress didn’t have any ability to tax the people.
1789 - America gave a new Congress taxing powers. Without taxing powers, the first Congress of the U.S. scantly lasted 7 years prior to being dubbed a failure; the second Congress, granted taxation powers, is still functioning 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 increase earned income for the government and steady the increase in alcohol consumption. In the western frontier whiskey was the traditional medium of exchange, and the twenty-five percent tax was harsh. By 1794 the area was openly in rebellion. The father of the IRS was spawned to enforce the tax. 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 leave the Union due to the fact that the overly oppressive taxing of 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/
Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes
