Liberal Forum

nefarious101 » Today, 2:21 pm » wrote: ↑

Today, 2:21 pm

It would seem that if you are willing to give up a massive share of your earnings you might want to know a little bit about it

The United States’ first federal income tax was levied during the Civil War. It became clear to Congress that this would not be a quick war, and the government needed to generate more revenue. It was also during this period, in 1862, that a Commissioner of Internal Revenue was established.Here’s a rundown of some key dates in income tax history:

• 1862: The U.S. government initiates a progressive federal income tax to offset Civil War expenses. It levies a 3 percent tax on incomes between $600 and $10,000 and 5 percent on incomes over $10,000.
• 1872: The tax is repealed.
• 1894: Federal income tax makes a short-lived comeback, but is ruled unconstitutional the very next year.
• 1913: The federal income tax resurfaces with the 16th Amendment to the Constitution, giving Congress legal authority to tax income.
• 1943: The Current Tax Payment Act is signed into law. It is designed to make income tax collection easier. The act requires employers to withhold federal income tax from an employee’s paycheck each pay period and send the payment directly to the IRS on behalf of the employee—a practice that remains today.
• 1953: The former federal Bureau of Internal Revenue is renamed the Internal Revenue Service we still know today.
• 1975: The Tax Reduction Act of 1975 creates the earned income tax credit. It reduces the tax burden on low- to moderate-income workers, particularly those with children.

https://www.stlouisfed.org/open-vault/2 ... come-taxes