A Potted History Of U.S. Income Taxes

1. A Potted History Of U.S. Income Taxes

2. From the beginning of civilisation itself, taxes have been a part of people’s lives, with perhaps the earliest tax known to have been implemented in Mesopotamia more than 4,000 years ago. This early tax used livestock as currency, and others throughout ancient history have imposed taxes on estates and even death. While these taxes were altered beyond recognition as time passed and systems and beliefs changed, some ancient taxes still found their way into the modern world, with China getting rid of the oldest historical tax still in existence, just over a decade ago.

3. Historical U.S. Taxes: Throughout our great nations history, the tax system has changed dramatically, and tariffs were once set in place of taxes to ensure the government received enough revenue. War time was historically when new taxes were introduced to increase revenue, and they were simply stopped when the war was over. Colonists from the United Kingdom used to place significant taxation on items such as tea, and even on such things as legal and business documents that were required by the Stamp Tax. Shortly after these taxes were imposed, disgruntled colonists made popular the term ‘taxation without representation’, since most

4. colonists were given no avenue to voice their opinion about the creation of such taxes. Perhaps one of the most renowned protests associated with taxes is the Boston Tea Party. Following this, and once the colonies had gained independence from the U.K., Congress passed the Stamp Act of July 6th of 1797 involving taxes placed on personal estates and possessions of the dead. However, death taxes didn’t stick for long and they were completely ended in 1802. Income tax throughout the ages: 1861 saw the very first income tax being created at the time of the Civil War and was used to help secure finances for the war effort. The very next year saw

5. Congress passing the Internal Revenue Act which in turn, led to the creation of the Bureau of Internal Revenue, something like what is now known as the IRS. This bureau slapped taxes on items such as tobacco and jewellery, but it did not prove popular and wasn’t renewed the following year. In 1862, when the first income tax form was introduced it identified the federal income tax as an “excise” tax. In 1894, Congress passed the Wilson Groman tax which was a 2% tax placed on incomes of over $4,000, but it also didn’t prove popular and the Supreme Court overturned it the following year.

6. The beginning of the twentieth century saw the income tax regaining popularity, and in 1913 the Sixteenth Amendment was given formal consent to be added to the Constitution and enabling Congress to, in certain very narrow instances, collect taxes on personal income. Income tax was collected at source, just as it is today, and taxes are initially withheld before the income reaches the individual. The following year of 1914 saw the Bureau of Internal Revenue release the very first income tax form, Form 1040, remaining in use to this day. After it was tested out on the population – with no taxes being charged during that year long test run period – Congress quickly began to have concerns about how federally privileged benefit.

7. Complicated the form was and that the average person would struggle to complete and file it with no errors. Income tax in 2018: The common misconception is that every single American is required to pay this federal tax, when the reality is very different. Some individuals, such as those who work for the U.S. government or who reside in certain federal territories or are employed in federal jobs are required to pay federal income taxes, but for the rest of us the possibility is that we probably don’t. The federal tax is just that “federal” meaning that it is only applicable to those who accept some type of

8. The I.R.S. will never tell you this and they are happy to keep taking your money as long as you give it to them for free.This may come as a shock to you, and you’d be forgiven for that, but knowing this information and not acting upon it, is a matter of choice, which is why even top officials at the I.R.S. always say truthfully that the tax is “voluntary.” So, if you want to stop paying taxes that you are not lawfully required to pay, get in touch with a reputable company who can give you advice and guidance and help put an end to your taxes for good!

9. End Taxes 4 Ever offer services to our clients to ensure they are only paying the amount of taxes owed and remaining in full compliance with both State and Federal income tax laws. Our tax experts have discovered that nearly all Americans are not just overpaying on income taxes, but in the vast majority of cases they lawfully required to very little if anything at all. We guide individuals in how to legally stop paying taxes, remain in full compliance with the income tax law and get the biggest tax refund that the law allows. Contact us now by visiting our website.