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

Between 1868 to 1913, almost 90% of the federal government’s revenue was gotten from tax on alcohol and tobacco. While the Civil War was occurring there was a brief income tax, but it wasn’t until 1913 that the 16th Amendment permitted Congress to tax incomes “from whatever sources attained.” The initial 1040’s were due on March 1, 1914. There was not 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 – Colony leaders met to extinguish British taxes in place by the Stamp Act. The Stamp Act Congress, as it was called, was the start of the American independence movement and the beginning of the modern U.S.

1782 – The first Congress under the Articles of Confederation formed. This Congress had no taxing powers.

1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the first Congress of the United States barely survived 7 years prior to being dubbed a failed attempt; the second Congress, with taxing powers, is currently 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 coerces 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 alcohol was the basic medium of exchange, and the 25% tax was harsh. By 1794 the area was in open rebellion. The father of the IRS 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 after the Revolutionary War and the War of 1812 is paid off. The South doesn’t see any reason for continued high import taxes that raise prices for Southern consumers and promote industrial monopolies in the North.

1850 – John C. Calhoun of South Carolina tells Congress that the South could leave the Union due to the fact that the overly oppressive taxation in the South increased funds that ended up in the North, creating a great shift 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/

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