Story of America Cards

The Income Tax in America

Taxes, Taxes, Taxes!, we may not like them very much, but we have to deal with them because it's the law, but I'm also an idiot who was properly not listening that good enough no offense Mr. Dustin, but let's talk about the Income Tax how it was like in America from the Government Section in Story of America Cards.

(What is Income Tax?)

An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them commonly called "taxable income". Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income.

(The Infernal of Tax Revenue)

When American patriots dumped the British tea into Boston Harbor in 1773, their rallying cry was "No taxation without representation!". Indeed England's attempt to tax the colonies was a major cause of the Revolution.

Each colony had its own systems of taxation, In New England, property taxes, poll taxes and faculty taxes were commonly levied on the assumed of various professions. The south preferred export and import taxes, the colonies guarded their powers of taxation jealousy, and refused to give them up even after the Continental Congress had established the first U.S government in 1781.

The new federal constitution empowered the Congress to levy and collect taxes, but it was interpreted to mean taxes on land or a poll tax only. The government's passage of a whiskey tax led to the Whiskey Rebellion, which had to be put down forcibly in 1794.

Thus, until the Civil War, most government funds were obtained from duties on exports and imports, from public land sales, and loans from banks or foreign governments.

The Civil War greatly increased the government's need for funds, however, and forced it to pass the first direct income tax act in 1862, followed by another in 1864.

Exemptions were granted all those whose income fell under $600 a year, and the income tax expired in 1872.

The Movement to revive the income tax began in the 1890s, when Congress passed a 2-percent tax on all incomes exceeding $4,000 a year, Although it was declared unconstitutional by the Supreme Court, many elements in American society including labor, small business, and farmers supported the idea.

Then in 1909, Congress passed corporate income tax of one percent on all corporations with a net worth exceeding $5,000.

Finally, in 1913 the 16th Amendment to the Constitution was adopted, providing for a federal income tax. A progressive scale was established, ranging from a maximum of 7 percent on incomes of $500,000 to a minimum of one percent on incomes of less than $4,000.

In 1944-45, the income tax rate rose to a high of 94 percent on income above $200,000, but by 1971 this maximum had declined to 70 percent. Corporate incomes taxes rose to a high of 52 percent during the Korean War.

But then receded to 48 percent by the end of the 1970s, While the total amount of taxes paid by the average American has risen dramatically in the 20th century and also the 21st Century, so has the number of services provided by the federal government.

(Ending)

And that is the Income Taxes in America told from the story of america cards, i hope you found some way to enjoy this topic, and I'll see you when I post another video, bye.