Quick History of Taxes in the United States from Aragon Tax Return Services

There's no denying that taxes play a major role in shaping our nation. Let's take a brief look back in time to explore the summarized history of taxes in the United States:

American Taxation: A Stamped Act

Our tax system begins long before the birth of the United States as we know it. In the 1760s, the British Parliament passed the infamous Stamp Act, imposing duties on various paper goods. This sparked outrage among American colonists, with the battle cry of "No Taxation without Representation" echoing across the country. The brewing tension eventually culminated in the American Revolution, where colonists fought for independence from burdensome British taxation.

Birth of our Nation: The Founding Fathers Needed Funding

After the dust settled, the Founding Fathers were confronted with the challenging responsibility of creating a new government for our young nation. Among their initial actions was addressing the matter of taxation. In 1787, Congress was granted the authority to impose and collect taxes, duties, tariffs, and excises to settle debts and ensure the security and well-being of the United States.

From the First Income Tax during the Civil War to the Present Day

Fast forward to the mid-19th century, the nation found itself centered in our Civil War. To fund the war, President Abraham Lincoln signed into law the Revenue Act of 1861, which introduced the nation's first income tax. Taxpayers were required to pay a 3% tax on incomes over $800 (equivalent to roughly $25,000 today). Although short-lived, this income tax set the stage for our current taxation policies.

At the beginning of the 20th century, a series of progressive reforms were introduced to improve economic inequalities and social injustices. The approval of the 16th Amendment in 1913 gave Congress the authority to impose a federal income tax on people's earnings, representing a crucial moment that laid the foundation for the modern tax system. The birth of our current payroll taxes, We have paid an income tax ever since.

Conclusion

Today, the U.S. tax system is a complex web of regulations, deductions, and credits that can boggle the mind of even the savviest taxpayer. From income taxes to property taxes, sales taxes to estate taxes, Americans navigate a mountain of tax obligations each year. I still am learning the never ending laws for each unique situation. While the specifics may vary, one thing remains constant – the inevitability of paying Uncle Sam. The two things guaranteed in life are taxes and death! Its literally an expensive subject we all participate in daily so lets spread knowledge about it.