A Brief Timeline of Taxation of the United States, Section 1

Raleigh NC CPA

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

From 1868 until 1913, about ninety percent of the federal government’s revenue was gotten from tax on whiskey and tobacco. During the Civil War the government instituted a brief income tax, but it wasn't until 1913 when the 16th Amendment was passed and enabled Congress to tax incomes “from whatever sources derived.” The first 1040’s were due on March 1, 1914. There wasn't any money taken from paychecks and no money was sent in with the return. Every taxpayer’s taxes were calculated by IRS field agents and a bill mailed to the taxpayer on the first of June.

1766 – Colonial leaders got together to extinguish British taxes in place by the Stamp Act. The Stamp Act Congress, which it was called, marked the start of the American independence movement and the birth of the modern U.S.

1782 – The first Congress under the Articles of Confederation formed. This Congress did not have any ability to tax the people.

1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the initial Congress of the U.S. scantly lasted seven years prior to being dubbed a failure; the second Congress, with taxation powers, is still going strong after more than two hundred 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 raise revenue and curb drinking. In the western frontier alcohol was the basic medium of exchange, and the twenty-five percent tax was a bit difficult to deal with. By 1794 the area was openly in revolt. 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 finally accounted for and paid. The South sees no reason to continue high import taxes that raise the price on goods for Southern consumers and increase the number of industrial monopolies in the North.

1850 – John C. Calhoun of South Carolina tells Congress that the South might secede from the Union due to the fact that the overly oppressive taxing in the South increased funds that ended up 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/

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This entry was posted on Tuesday, December 29th, 2009 at 6:15 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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