Hey, Why Am I Paying All This Income Tax?

InterestingShitPublished: June 28, 2017Updated: July 3, 201720 plays$0.04 earned
Published: June 28, 2017Updated: July 3, 2017

The United States of America was basically built upon tax revolt, so why do we have to pay it? The Boston Tea Party showed their protest against the British tax system by dumping a consignment of taxed tea, which in turn led to a series of events that preceded the American Revolution. After The Resolution for Independancy in 1776, the United States raised money mainly by using import and export taxes.

President Abraham Lincoln was the first to introduce tax on personal income in 1861. This was so that he could fund the Civil War, so he imposed a flat tax for people who had incomes of $800 and over. By 1913, the 16th amendment was ratified, giving Congress the power to collect income taxes. They imposed a 1% flat tax on income over $3000, with additional 6% tax on income over $500,000.

By the time World War I started in 1918, everyone making over $1 million was taxed up to 77% to help finance the war. The American people took only a short breather, before they were taxed again to help alleviate the effects of The Great Depression. Taxes went up again in 1938, this time to help fund the Second World War and they stayed high until the 60s.

Compared to the past century, America now has the lowest tax rate.

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