A Short Timeline of Taxation of the USA, Part One
December 25, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
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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The History of Taxation, Part Nine: Tax Law, the Slaves, and the American Civil War
December 25, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862
Can there be any doubtful thoughts about this topic? Certainly the American Civil War was about the slavery issue… was it not? Well actually, one of the greatest hoaxes in our history is that the Civil War began because of the slavery issue and that Lincoln, the Great Emancipator, fueled a terrible war to break the chains of bondage that enslaved over 3 million black Americans. Right before the war, the South had everything its way.
In 1860, the South controlled the Supreme Court and Lincoln and Congress were approving a constitutional amendment to protect slavery forever! What happened?
We should rewind the time back to the year 1832. By 1832 the national debt from the War of 1812 had been paid and the South saw no need to keep up the exorbitant import taxes that seemed to only jack up prices for the South’s consumers. Either the South paid high import taxes on imported goods or it bought Northern manufactured goods at excessive prices. Either way, the South’s money transferred to the North. To say the least, the South was not happy with this arrangement. 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!
So, in 1832 a convention was hosted in South Carolina to nullify these federal import taxes. The South declared the tax was unconstitutional and authorized the governor to resist the enforcing of the import taxes instituted by the national government. It seemed like a civil war was in the making. Mild tempers won over, however, and the Great Compromise of 1833 reduced import taxes over the subsequent few years to an area the South could tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
Over the ensuing years, however, Northern corporate and manufacturer interests bullied into Congress more taxes that again stressed Southern planters and allowed Northern Manufacturers to become rich once again. In 1850, John C. Calhoun, the South’s most outstanding spokesperson, delivered a speech to Congress. His speech listed 3 grievances of the South that may cause secession from the Union and war. The first two involved fears about the gradual decline of power of the South in general and the states in particular.
The third, and only solid grievance, was about taxation. In Calhoun’s view, national import taxes was a targeted legislation against the South. Huge amounts of taxes on the South raised money that was used in the North. The focus of economic life in the country was steadily changing strongly to the North. Calhoun spoke of secession if the taxes weren’t reduced. But what of the slaves? Well, in his campaign for the presidency in 1860, Lincoln repeatedly said he would not do anything about slavery in the South. Actually, most Northerners did not care much about black men in bondage, just as little as how much they worried about the Native-American in the West or impoverished uneducated workers in factories. By and large many black slaves got substantially better quality treatment and more compassion than their counterparts in the North. Lincoln, in fact, promised Southern plantation-owners that fugitive slaves would be caught. The Congress and then the Supreme Court (Dred Scott decision) continually affirmed that slavery wasn’t going anywhere.
However, just as Lincoln was elected and Congress assembled in 1861, they enacted more high import tariffs. Slavery wasn’t an problem – higher import taxes were. In his inaugural address Lincoln stated he would collect the customs in the South even if there happened to be a secession!
Fort Sumter, near the entrance of the Charleston Harbor, started to fill with federal troops to support the collection of the new taxes. The Civil War began in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The inevitable had been brewing for years – but it wasn’t about the slaves. It was about tax policy.
Two years later, Lincoln issued the Emancipation Proclamation, and then only following repeated military battles, as the last resort to rally the North behind a noble cause. With respect to the slave issue – most Northerners didn’t care much concerning black people in bondage, no more than they cared about Native-Americans in the west and the poor illiterate peasants in the factories. Ironically, most black slaves got better treatment and greater compassion than their impoverished counterparts in the North.
That’s it for the History of Taxes Series!
http://www.marccpa.com/
Related posts
A Short Timeline of Tax Practices of the USA, Part One
December 21, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
From 1868 to 1913, about 90% of the national government’s revenue was gotten from taxes on alcohol and tobacco. While the Civil War was going on there was a brief income tax, but it was not until 1913 when the 16th Amendment permitted Congress to tax incomes “from whatever sources attained.” The initial 1040’s were due on March 1, 1914. No money was taken from paychecks and none was sent away with the return. Each taxpayer’s taxes were checked by IRS field agents and a bill mailed to the taxpayer on the first of June.
1766 – Colony leaders met to protest British taxes in place by the Stamp Act. This Stamp Act Congress, as it was named, was the beginning of the American independence movement and the origin of the modern U.S.
1782 – The first Congress under the Articles of Confederation formed. This Congress didn’t have any ability to tax the people.
1789 – Americans gave a new Congress taxing powers. Without taxing powers, the first Congress of the United States scantly survived 7 years before being declared a failure; the 2nd Congress, with taxing powers, is still functioning 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 whiskey was the basic mode of exchange, and the twenty-five percent tax was a bit difficult to deal with. By 1794 the area was in open revolt. The forerunner of the Internal Revenue Service was created to enforce the tax. 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 finally accounted for and paid. The South doesn’t see any reason to continue high import taxes that raise prices for Southern consumers and promote industrial monopolies in the North.
1850 – John C. Calhoun of South Carolina warns Congress that the South could leave the Union due to the fact that the overly oppressive taxing of the South increased funds that ended up in the North, causing 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/
Related posts
A Lesson in Taxation, Part Nine: Tax Law, Slavery, and the Civil War
December 16, 2009 by Taxcut Editor
Filed under Personal and Business Taxes
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862
Could there be a doubt about it? Of course the American Civil War was about the slavery issue… was it not? Well actually, one of the most hoaxes in our history is that the Civil War was started over the slavery issue and that Lincoln, the Great Emancipator, used a terrible struggle to break the chains of bonding that enslaved over 3 million black Americans. Right before the war, the South had everything its way.
In 1860, the South controlled the Supreme Court and Lincoln and Congress were beginning the process of passing a constitutional amendment to protect slavery for all time! What happened?
We should move the time back to the year 1832. By that year the national debt from the War of 1812 had been re-paid and the South didn’t see a need to keep up the exorbitant import taxes which appeared to only raise price tags for Southern consumers. Either the South had to pay high import taxes on imported goods or it purchased Northern manufactured goods at excessive prices. In either case, the South’s money transferred to the North. To say the least, the South was not happy with this arrangement. 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!
So, in 1832 a convention was hosted in South Carolina to get rid of these federal import taxes. The convention decided the tax was unconstitutional and authorized the governor to defy the enforcement of the import taxes instituted by the national government. It looked like a civil war was in the works. Cool heads prevailed, however, and the Great Compromise of 1833 lowered import taxes over the next few years to levels the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.
Over the next few years, however, Northern commercial and manufacturer companies forced into Congress new taxes that once again oppressed Southern planters and made Northern manufacturers become rich. In 1850, John C. Calhoun, the South’s most exceptional spokesperson, gave a speech to Congress. It spoke of three grievances of the South that may lead to secession from the Union and war. The first two involved fears about the erosion of power of the South in general and the the power of state government as well.
The third, and only solid complaint, was about tax policy. In Calhoun’s eyes, national import taxes was a class legislation against the South. Heavy taxes on the South created funds that were spent in the North. The focus of economic strength in the country was shifting heavily to the North. Calhoun threatened secession if the taxes weren’t lowered. But what about the slaves? Well, in his run for the presidency in 1860, Lincoln repeatedly said he would not do anything about slavery in the South. Actually, most Northerners did not care much about black men in bondage, just as little as how much they worried about the Native-American in the West or impoverished uneducated workers in factories. The majority of black slaves got better treatment and more compassion than their counterparts in the North. Lincoln, in fact, assured Southern slave-owners that fugitive slaves would be returned. The Congress and then the Supreme Court (Dred Scott decision) further acknowledged that slavery was here to stay.
However, just as Lincoln was placed in office and Congress assembled in 1861, they created new high import tariffs. Slavery wasn’t the issue – higher import taxes were. In his inaugural address Lincoln said he would collect the customs in the South even if there happened to be a secession!
Fort Sumter, near the beginning of the Charleston Harbor, began filling with Union soldiers to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians fired on the federal garrison at Fort Sumter. The inevitable had been brewing for years – but it was not over slavery. It was about taxes.
2 years after that, Lincoln issued the Emancipation Proclamation, and then only following several military battles, as a last resort to rally the North to a worthwhile cause. With respect to the slave issue – the majority of the North cared little concerning black people in bondage, no more than they thought about Native-Americans in the west or impoverished uneducated peasants in the factories. By and large, many black slaves got better treatment and greater compassion than their impoverished counterparts in the North.
That’s it for the History of Taxes Series!
http://www.marccpa.com/
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