A Brief History of U.S. Federal Income Taxes

By Admin
Views 623
18 Apr. 2023
So you think you're paying too much in taxes...
In 1861, the U.S. Government imposed the first income taxes on citizens in order to help cover the costs of the American Civil War. The tax was imposed as part of the Revenue Act of 1861 and was a 3% tax on all incomes in excess of $800. The Internal Revenue Services was founded in 1862. In the years following, the income tax rate was increased several times, challenges were made to the constitutionality of the income taxes imposed. Finally, in 1872 Congress repealed income taxes altogether. All was quiet until 1913, when Congress ratified the 16th Amendment which stated: The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. Then in October 1913, as part of the Revenue Act of 1913, U.S. Congress imposed a 1% tax on all income from any source over $3,000. From this point, tax rates increased and decreased considerably:Comments
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