U.S. Tax History

Part I.  30 pts.   In general terms, explain/ question the evolution of the U.S. federal income tax as it applies to individuals.  Be certainly to include major changes through 2011. Historically, wars flummox motivated g all overning bodys of close nations to collect taxes. U.S. tax history is no different. The federal administration first imposed income taxes in 1861 to help pay for the civic contend. With the significant cost of the Civil War burdening the treasury, the administration enacted a tax set up of 3% on incomes above $800, and 5% for incomes above $10,000. These measures were short-lived, however, and the laws were repealed in the middle of Reconstruction, in 1872. American citizens didnt pay income taxes for the next twenty years. While local governments a lot rely on property taxes for revenue, the Constitution made it unmanageable for the federal government to directly tax property or income from it in the states. A federal property tax would have to be evenly divided by states populations, making it cowl to tax higher-earning states more than lower-income states. In 1909, Congress tried to overwhelm this obstacle by proposing the Sixteenth Amendment, which would allow the federal government to collect income taxes directly from individuals. The amendment was ratified in 1913 in the utmost months of the Taft administration.

That year, the tax rates were 1% on incomes above $3,000 and 6% above $500,000. With the outbreak of area War I, the federal government again needed to raise revenue quickly, and in 1918 legislators raise the rates sharply, particularly on high-income citizens: 77% on incomes over $1 million. As the nation emerged from the Depression, the New Deal brought sensitive benefits for citizens and a new type of tax. The marginal tax rate that rode such a steep increase during demesne War I stayed high all the way through World War II, when it went as high as 92%. During World War II, the tax rate wasnt the only thing that changed. The new tax policy added a feature... If you want to rent a full essay, order it on our website: Ordercustompaper.com

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