If you hate paying income tax. blame it on the Civil War. From 1792 – 1802, the government relied on sales tax for revenue. Similar to the sin taxes of today, commodities like tobacco, snuff, distilled spirits, and refined sugar were all taxable, as well as one sale that was truly sinful – slaves.
The War of 1812 added to taxpayer pain. In order to pay for it, the government levied a luxury tax of sorts. Gold, silverware, jewelry, and watches all fell prey to the taxman. In 1817, once the war was over, all the sales taxes were abolished and a word we hear a lot these days furnished all the revenue the government needed- yes, tariffs on foreign goods. And that remained the status quo until 1862, a year that will live in infamy for all you income tax haters.
In order to support the Civil War which had broken out the year before, Congress passed the first income tax law, the Act of 1862. It established the office of the Commissioner of Internal Revenue, granting him ( a given in those days) the power to not only assess, levy, and collect taxes but the right to enforce them by prosecuting those who failed to pay, and if necessary seize their property and income.
And so things continued until 1913 when Congress cast the matter in stone, ratifying the 16th Amendment to the Constitution, and the rest, as they say, is history. But it’s not one Americans are happy about.
Now, after over a century of forking their hard-earned dollars over to the IRS in federal income taxes. not to mention state income taxes and sales taxes. more Americans than not are complaining. According to a 2016 Gallup Poll, 57% of those responding said they paid too much. But, and it’s a big but, many of those who say they would benefit from a lower tax rate when asked to specify a fair rate, state a number that is higher than what they currently play.
They do not realize they are already getting tax breaks for necessities in their lives such as education, child care, and housing that, in effect, already lower their rate. Lack of familiarity with tax basics can be expensive for those who prepare their own tax returns. Many fail to take advantage of exemptions and credits that could reduce their tax burden.
While no one denies that some sort of taxation is necessary to run the government, there’s no shortage of people who have opinions on better ways to collect their money. Many point to a flat tax as more fair.
NEXT: Would A Flat Tax Make You Any Happier
Dana George-Berberich is a freelance reporter and novelist. She has written finance articles for newspapers across the country and for companies like Dun & Bradstreet and Bankrate.
