Fact of the Day– Tax Day Edition
Merry Tax Day! In honor of everyone’s favorite holiday, here are some interesting historical facts from Yahoo! about taxation in the USA:
- The first personal income taxes in the United States were levied in 1861 by an act of Congress, mostly to foot the bill for the newly erupted and very costly Civil War. There were so many questions and problems with the new system, however, that nothing was collected until the following year.
- Income tax, along with many other taxes imposed during the Civil War, was repealed after 1865 because the government simply had no need for the extra revenue. The majority of federal income came from taxes on tobacco and alcohol, which were hot commodities at war’s end.
- Think you give a lot to Uncle Sam today? Just be thankful you weren’ t paying income tax in 1945, when the country’ s top earners doled 94 percent of their salaries over to the government, mostly to recoup costs incurred from the war effort. Taxation rates for the highest income brackets hovered between 82 and 92 percent until 1963.
Read more here.