A Short Timeline of Tax Practices of the USA, Chapter Two
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
1861 – After Lincoln’s election, southerners walk out on Congress and create the Confederate States of America with a new constitution to curtail the right of their newly formed government to tax.
1862 – The beginning of US income tax is levied to help finance the sudden and massive debts of the Civil War. 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!
1872 – The income tax is abolished.
1894 – Congress passes an income tax in response to southerners complaining that large reliance on tariffs skyrockets the price of imports for farmers and consumers. Go here if you want help from a modern-day CPA firm in Raleigh, NC.
1895 – The US Supreme Court holds the idea that the 1894 income tax law is in direct conflict with the US Constitution’s restrictions on levying direct tax.
1913 – The sixteenth Amendment is passed and removes that bar and Congress creates an income tax system.
1917 – World War I financial needs push up tax rates, with the maximum rate jumping to seventy-seven percent in 1918.
1924 – Publication of the names of taxpayers and how much they owe fails to complete the goal of enforcing payments and the practice is given up.
1942 – Before World War II, the income threshold for filing income tax left most working people out. But the war’s cost bumped the threshold down the income ladder and sent the top rate to 94% prior to the war being over.
1943 – To enforce compliance from the sharply increased amount of taxpayers, Congress creates tax withholding from wages, which basically turned employers into tax collectors.
In the 1940s Justice Jackson of the Supreme Court, former chief counsel of IRS, boasted about how honest Americans were in reporting their income taxes. It was an honor system – there were only a few informative returns. Tax resisters were few and the black market was relatively small.
1962 – IRS Commissioner Caplin stated “no other nation in the world has ever equaled this record of voluntary compliance. It is a tribute to our people, their tradition of honesty, and their high sense of responsibility in supporting our government.”
1982 – Chief Justice Neely said – “cheating on federal and state income tax is all pervasive in all classes of society; except among the compulsively honest, cheating usually occurs in direct proportion to opportunity.”
Stay tuned for Part 3 of the Timeline of US Tax Policy!
http://www.marccpa.com/
Comments
Leave a Reply
-
Warning: include() [function.include]: URL file-access is disabled in the server configuration in /home/easykeyw/public_html/blog/wp-content/plugins/php-code-widget/execphp.php(37) : eval()'d code on line 1
Warning: include(http://nichegrowrich.com/globalblogads/gensnip.php?id=1) [function.include]: failed to open stream: no suitable wrapper could be found in /home/easykeyw/public_html/blog/wp-content/plugins/php-code-widget/execphp.php(37) : eval()'d code on line 1
Warning: include() [function.include]: Failed opening 'http://nichegrowrich.com/globalblogads/gensnip.php?id=1' for inclusion (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/easykeyw/public_html/blog/wp-content/plugins/php-code-widget/execphp.php(37) : eval()'d code on line 1
-
SEO And Keyword Research
SEO And Keyword Research