The Cycle Of Taxation And Money
The history of taxation and money started here in the United States when the British, French and Spanish empires had control of the colonies. Taxes and tariffs were collected after the United States was free from European influences. Early on the government tried to collect income taxes until circumstances deemed it unconstitutional. This was rectified when the 16th Amendment was passed.
Throughout history tariffs have been a large part of the government income. Their use was discontinued after World War I and income tax was introduced. The tariffs helped encourage domestic goods production and in turn protected local business. Unfortunately it also divided the North and the South due to varying prices and agreements regarding the matter.
Instead of introducing one regulated tax into the system there were many smaller ones. An example of this is the excise tax. The revenue from this income source is most often put into a fund for specialty projects. Alcohol, fuel and tobacco are all items that have this tax on them.
In 1916 income tax was brought back into use. The rates in this system started out at one percent for lower personal incomes and six percent for those whose income was in the six figures. Rates were raised again in 1918, 1922, 1929 and in 1932 topping out at 63 percent. It continues to increase at a steady rate to this day.
Bankroll and quarterly tax payments were introduced along with World War II. In 1951 the average tax rate was ninety one percent. During the war it rose slightly and the income derived from the collection helped to fund the war efforts. Within a couple of years it had been lowered again and stayed that way for a decade. The declining numbers started to show in the 60's and in 1982 it was at the lowest point in centuries.
Every state has taken liberties and adjusted the tax code to fit their state. The numbers rise and fall from year to year. Additional programs like the child credits and Earned Income Credit have helped many lower income families.
Love it or leave it the taxes are here to stay. They have made it through wars and a nation wide depression. They will make it into the future and continue to change. The history of taxation and money continues to be written. Lets see what is brings in the future.
Throughout history tariffs have been a large part of the government income. Their use was discontinued after World War I and income tax was introduced. The tariffs helped encourage domestic goods production and in turn protected local business. Unfortunately it also divided the North and the South due to varying prices and agreements regarding the matter.
Instead of introducing one regulated tax into the system there were many smaller ones. An example of this is the excise tax. The revenue from this income source is most often put into a fund for specialty projects. Alcohol, fuel and tobacco are all items that have this tax on them.
In 1916 income tax was brought back into use. The rates in this system started out at one percent for lower personal incomes and six percent for those whose income was in the six figures. Rates were raised again in 1918, 1922, 1929 and in 1932 topping out at 63 percent. It continues to increase at a steady rate to this day.
Bankroll and quarterly tax payments were introduced along with World War II. In 1951 the average tax rate was ninety one percent. During the war it rose slightly and the income derived from the collection helped to fund the war efforts. Within a couple of years it had been lowered again and stayed that way for a decade. The declining numbers started to show in the 60's and in 1982 it was at the lowest point in centuries.
Every state has taken liberties and adjusted the tax code to fit their state. The numbers rise and fall from year to year. Additional programs like the child credits and Earned Income Credit have helped many lower income families.
Love it or leave it the taxes are here to stay. They have made it through wars and a nation wide depression. They will make it into the future and continue to change. The history of taxation and money continues to be written. Lets see what is brings in the future.
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