After the colonies broke free from the rule of the French, British and Spanish empires is when the history of taxation and money started. Tariffs and taxes were created and implemented. Shortly after they were brought into fruition income taxes were ruled unconstitutional and their practice was no longer. After the 16th Amendment was added to the Constitution then they were brought back into action.
Tariffs have played a part in many parts of history and they have been a large source of income for the federal government over the centuries. This type of income source for the federal government was abandoned after World War I for the income tax. From protecting local businesses by encouraging domestic manufacturing to dividing the North and South over the price of tariffs and tariff agreements between England; they are a huge part of our country's past.
Instead of introducing one regulated tax into the system there were many smaller ones. An example of this is the excise tax. The revenue from this income source is most often put into a fund for specialty projects. Alcohol, fuel and tobacco are all items that have this tax on them.
After income taxes were implemented again the rates jumped all over the place for quite a while. Starting with a low rate of 1 percent in 1916 and ending with 63 percent in 1932; rates continue to fluctuate to this day. Most generally lower rates are for smaller income brackets. Higher rates will be given to those who bring home six figures or more.
The United States introduction to payroll and quarterly tax payments was at the same time as World War II. At that time the average holding rate was 91 percent. Over 12 years, it rose and fell within just a few points. By the early 1960s tax rates were heading toward 50 percent.
Varying rates have been around for centuries and are here to stay. To ease the burden of taxes, government programs and incentives were introduced. Things like child credits and the Earned Income Credit are in place to help the public. The additions to the tax law are most generally going to benefit lower incomes and are meant to help offset the amount of money paid.
The tax system has withstood war and a great depression. It will be here far into the future and it is forever changing. The history of taxation and money is interesting and the future should be as well.
Tariffs have played a part in many parts of history and they have been a large source of income for the federal government over the centuries. This type of income source for the federal government was abandoned after World War I for the income tax. From protecting local businesses by encouraging domestic manufacturing to dividing the North and South over the price of tariffs and tariff agreements between England; they are a huge part of our country's past.
Instead of introducing one regulated tax into the system there were many smaller ones. An example of this is the excise tax. The revenue from this income source is most often put into a fund for specialty projects. Alcohol, fuel and tobacco are all items that have this tax on them.
After income taxes were implemented again the rates jumped all over the place for quite a while. Starting with a low rate of 1 percent in 1916 and ending with 63 percent in 1932; rates continue to fluctuate to this day. Most generally lower rates are for smaller income brackets. Higher rates will be given to those who bring home six figures or more.
The United States introduction to payroll and quarterly tax payments was at the same time as World War II. At that time the average holding rate was 91 percent. Over 12 years, it rose and fell within just a few points. By the early 1960s tax rates were heading toward 50 percent.
Varying rates have been around for centuries and are here to stay. To ease the burden of taxes, government programs and incentives were introduced. Things like child credits and the Earned Income Credit are in place to help the public. The additions to the tax law are most generally going to benefit lower incomes and are meant to help offset the amount of money paid.
The tax system has withstood war and a great depression. It will be here far into the future and it is forever changing. The history of taxation and money is interesting and the future should be as well.
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