When Did Congress Start Income Taxes ?
The United States was funded by some internal taxes on slaves and tobacco and snuff. In its early days, the country had no tax system to fund its major operations. The government relied on small taxation methods to collect funds and revenue. In 1812, was the first time when the government started imposing sales tax on gold and other jewelry. |
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Then in 1862, the Congress enacted the first income tax law. This came into existence to support the Civil War going on during that time. This Act of 1862 established the office of Commissioner of Internal Revenue. The Commissioner was given the power to assess, levy, and collect taxes, and the right to enforce the tax laws through seizure of property and income, and through prosecution. The powers and authority remain very much the same today.
It was the year 1913 that made income tax compulsory and a law. From this year on, citizens were compulsorily made to pay income tax. That was the historic year when income tax was made a compulsory and mandatory law.
The Congress enacted the largest tax cut in the year 1981, approximately $750 million in six years. The amendment gave the legal power to Congress for tax on income. This law stated that both the individual and corporations will be required to pay a certain percentage of tax from their income. The Revenue Law became prominently active in the year 1913, and that was how income tax became a law. There have been many changes to the percentage of tax through the years.
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