December 20, 2009

A Short Timeline of Taxation of the USA, Section One

Raleigh NC Accountant

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Between 1868 to 1913, about ninety percent of the federal government’s revenue was gotten from taxes on whiskey and tobacco. While the Civil War was going on the government instituted a short income tax, but it was not until 1913 that the sixteenth Amendment was passed and enabled Congress to tax incomes “from whatever sources attained.” The first 1040’s were due on March 1, 1914. No money was withheld from paychecks and none was sent away with the return. Every taxpayer’s computations were calculated by IRS field agents and a bill sent to the taxpayer on June 1st.

1766 - Leaders of the colonies got together to extinguish British taxes in place by the Stamp Act. The Stamp Act Congress, which it was named, was the beginning of the American independence movement and the origin of the United States.

1782 - The first Congress under the Articles of Confederation met. This Congress had no ability to tax the people.

1789 - Americans granted a newly formed Congress the ability to tax. Without taxing powers, the initial Congress of the U.S. scantly survived 7 years prior to being dubbed a failed attempt; the second Congress, with taxing powers, is currently functioning after more than two hundred years. 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!

1792 - Alexander Hamilton persuades Congress into passing an excise tax on whiskey to increase revenue and curb drinking. 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 region was in open revolt. The father of the IRS was spawned 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 finally accounted for and paid. The South does not see any reason to continue high import taxes that raise prices for Southern consumers and increase the number of industrial monopolies in the North.

1850 - John C. Calhoun of South Carolina tells Congress that the South might secede from the Union because heavy taxation in the South raised funds that were spent in the North, creating a massive change 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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