A Brief History of Income Tax
Income taxes are part of life for us in the United States. We pay taxes in order to build infrastructure, fund defense and the government, and to help progress research and technology. Our taxes (while perhaps not gleefully given) serve an important purpose as it pertains to keeping this country going.
Our country is not the only one which utilizes income tax. In fact, the overwhelming majority of the world’s countries use income tax in some way in order to develop and grow. It is a way for the citizenry to fund the needs of everyone.
Here is a brief history of income tax in our country, and the effect it has had on daily life.
– Income tax was first implemented in 1862 in order to fund the Civil War effort. The Act of 1862 established the Internal Revenue department of government, and proposed modified tax ratios based on total income.
– In 1916, the 16th Amendment to the Constitution was passed, which made income tax a permanent fixture for everyone in the country.
– In 1986, President Reagan introduced the Tax Reform act, with the intent to reduce total taxation and to provide fairer ratios of payment.
– In 1993, President Clinton implemented the Revenue Reconciliation Act, in order to provide citizens with more acceptable rates of taxation.
– Tax reforms have been steadily introduced on a nearly yearly basis, and will continue to be a point of political focus in every way.
While we don’t necessarily have to be enthusiastic about paying income tax, the fact of the matter is that it is an important part of keeping our country going. While not a perfect system, it is a proven way to net the money needed every year to cover costs.