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Wednesday, February 20, 2013

All About The History of Taxes

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The tax has evolved into federal, State and local in the United States in response to the changes that have taken place in the country. Over the years, successive Governments have played a vital role in imposing or cancelling different types of taxes, which affected every aspect of the country's growth. History helps us understand the gradual changes in society and economy growth and the role of Government.

Taxes in America

Between the period of colonization and the pre-revolutionary era, primarily taxes levied by various colonies on the imports and exports of tobacco, sugar, distilled alcoholic beverages, vehicles and property and slaves. Some of the Middle colonies as property tax or tribute imposed on all adult males. The objective of the tax regime colonies only to facilitate the smooth operation of the colonies and fill the coffers of England. First, the tax imposed on the American colonies, in 1765, when the English Parliament passed the law of nature, with a tax on tea. All of these taxes on the difference between the British and the Americans, leading to the Revolutionary War of 1775.

Another revolution, in accordance with the articles of Confederation, adopted in 1781, and the right to levy taxes only with each province, as the country has very few nation-building responsibilities as a coherent whole. However, upon the adoption of the Constitution in 1789, it was very clear that the drafters of the law the Government cannot function if its resource collection depends on the whims and fancies of other States. The Constitution supported the Conference to "put ... And collect taxes, duties, levies, excise and pay debts, provide for the common defence and general welfare of the United States. "the collection, however, was left in the States. Since then, the Federal Government imposed several new taxes, one of them was the first direct tax on the owners of the slave houses, land and real estate. This was done to raise funds to support the confrontation with France in 1790. Direct taxation was abolished by President Thomas Jefferson in 1802.

Experienced civil war of 1862 enacted the nation's first income tax law by Congress. Also in earlier restoration of excise tax and a tax on personal income. Personal income tax is 3 percent on all income above $ 800 a year. The internal revenue services (IRS) came into existence when President Lincoln and Congress, in 1862, created the post of Commissioner of internal revenue, enable to collect taxes on behalf of the nation. The nation's civil war also fell further, new tax laws passed. And a tax on all trades and crafts, goods such as drugs and pharmaceutical patents, telegrams, gunpowder, iron, leather, piano, yachts, billiard tables, playing cards, alcohol. And the estate tax on all properties, imposes tax follow-up. Helped a large number of internal revenue taxes amounting to more than $ 310 million. Most taxes were abolished after the end of the civil war.

Amendment 16 of the Constitution of income tax permanently as part of the tax system in the United States. This amendment gave Congress not only the legal authority of the income tax on individuals and corporations, but also the right and need to know about all the details of individuals or businesses. This was done in 1913. Another amendment to income tax law in 1916 to provide all illegal entry within the scope of the tax. This period saw many of the tax evasion charges. The period between World War I and World War II, and saw that many of the new tax laws enacted, mainly for the purpose of raising funds for the war. Between the wars plunging the economy during the great depression led to the Social Security Act in 1935, famous also known as unemployment compensation tax. The provisions of this law was to provide payments to workers who have lost their jobs, and public assistance to the elderly, the needy and those with special needs, minors to ensure social security for them.

By the end of the second world war, the tax system has developed very well. Featured tax recovery Act of 1981, popularly known as the Reagan tax cuts reduce 25% of individual slides, spread over 3 years. Other new features adopted an economic standpoint, and incentives for individuals and businesses. And enter another amendment to the Social Security Act to include the disabled, widows, too. In 1965, Congress passed the health care program, making mandatory medical care for persons aged 65 or over, regardless of their income.

August 10, 1993, President Clinton signed into law the revenue Reconciliation Act to reduce about $ 496000000000 in federal deficit. In 1997, the tax law is another provision to reduce the capital gains tax for individuals and tax incentives for education and $ 500 per child tax credit. One of them was under Bush has seen many more tax laws are passed, and the economic growth and tax relief Reconciliation Act that will help taxpayers save up to $ 1.3 trillion in taxes over 10 years. Business tax age has been extended since 2005 until 2010, and raising the exemption for the alternative minimum tax, and add provisions to convince individuals incentive to save more for retirement. Every tax law passed in the United States has seen many changes since the colonial era, to enable the country and its citizens.

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