Global Taxation
Assignment
In fact, America's first citizens enjoyed very few taxes.
But as time went on, more levies were added: federal income tax, the alternative
minimum tax, corporate tax, estate tax, the Federal Insurance Contributions Act
(FICA), and so on. Some were increased, while others were repealed—only to be
added again. Below is our analysis of the origins of some of the more common
taxes we face today.
The Civil War led to the creation of the country's first income tax and the first
version of the Office of the Commissioner of Internal Revenue—the earlier
version of what we now call the Internal Revenue Service (IRS). This office took
over the responsibility of collecting taxes from individual states. Excise taxes
were also added to almost every commodity possible—alcohol, tobacco,
gunpowder, tea.
The federal income tax as we know it was officially enacted in 1913, while
corporate income taxes were enacted slightly earlier, in 1909.
The first estate tax was enacted in 1797 in order to fund the U.S. Navy. It was
repealed but reinstituted over the years, often in response to the need to finance
wars. The modern estate tax as we know it was implemented in 1916.
Multiple taxes were created in the 1920s and 1930s:
The gift tax came about in 1924.
Sales taxes were first enacted in West Virginia in 1921. Eleven other
states followed suit in 1933. By 1940, 18 more states had a sales tax in
place. Alaska, Delaware, Montana, New Hampshire, and Oregon are the
only states without a sales tax.
President Franklin Roosevelt signed the Social Security Act in 1935. The
government first collected Social Security taxes in January 1937,
although no benefits were paid until January 1940.
The alternative minimum tax (AMT), a type of federal income tax, wasn't
enacted until 1978. This parallel system uses a separate set of rules to
calculate taxable income after allowed deductions. It was designed to prevent
taxpayers from avoiding their fair share of taxes.
Assignment
In fact, America's first citizens enjoyed very few taxes.
But as time went on, more levies were added: federal income tax, the alternative
minimum tax, corporate tax, estate tax, the Federal Insurance Contributions Act
(FICA), and so on. Some were increased, while others were repealed—only to be
added again. Below is our analysis of the origins of some of the more common
taxes we face today.
The Civil War led to the creation of the country's first income tax and the first
version of the Office of the Commissioner of Internal Revenue—the earlier
version of what we now call the Internal Revenue Service (IRS). This office took
over the responsibility of collecting taxes from individual states. Excise taxes
were also added to almost every commodity possible—alcohol, tobacco,
gunpowder, tea.
The federal income tax as we know it was officially enacted in 1913, while
corporate income taxes were enacted slightly earlier, in 1909.
The first estate tax was enacted in 1797 in order to fund the U.S. Navy. It was
repealed but reinstituted over the years, often in response to the need to finance
wars. The modern estate tax as we know it was implemented in 1916.
Multiple taxes were created in the 1920s and 1930s:
The gift tax came about in 1924.
Sales taxes were first enacted in West Virginia in 1921. Eleven other
states followed suit in 1933. By 1940, 18 more states had a sales tax in
place. Alaska, Delaware, Montana, New Hampshire, and Oregon are the
only states without a sales tax.
President Franklin Roosevelt signed the Social Security Act in 1935. The
government first collected Social Security taxes in January 1937,
although no benefits were paid until January 1940.
The alternative minimum tax (AMT), a type of federal income tax, wasn't
enacted until 1978. This parallel system uses a separate set of rules to
calculate taxable income after allowed deductions. It was designed to prevent
taxpayers from avoiding their fair share of taxes.
