The origin of the income tax on individuals is generally cited as the passage of the 16th Amendment, passed by Congress on July 2, 1909, and ratified February 3, 1913; however, its history actually goes back even further.
Why was there a tax on whiskey?
The “whiskey tax” became law in 1791, and was intended to generate revenue for the war debt incurred during the Revolutionary War. The tax applied to all distilled spirits, but consumption of US whiskey was rapidly expanding in the late 18th century, so the excise became widely known as a “whiskey tax”.
Why were the farmers angry about the whiskey tax?
The Whiskey Rebellion was triggered by a tax imposed on distilled liquors in 1791. Farmers on the western frontier felt it placed undue hardship on them because they usually distilled their grains into alcohol, which was easier to ship than whole grains.
What was the history of taxation in the United States?
History of taxation in the United States. The history of taxation in the USA begins with the colonial protest against British taxation policy in the 1760s, leading to the American Revolution. The independent nation collected taxes on imports ( “tariffs” ), whiskey, and (for a while) on glass windows.
What kind of taxes did the government collect after the Revolutionary War?
After the Revolutionary War, the Constitution gave Congress the power to impose taxes and other levies on the general public. States were responsible to collect and pass them on to the government. Most of these were excise taxes —taxes imposed on specific goods or services like alcohol and tobacco.
What kind of taxes did the independent nation collect?
The independent nation collected taxes on imports ( “tariffs” ), whiskey, and (for a while) on glass windows. States and localities collected poll taxes on voters and property taxes on land and commercial buildings. In addition, there were the state and federal excise taxes.
What kind of taxes did people have to pay?
Most citizens were subject to a poll tax, which was a flat tax on every adult in a jurisdiction, as well as property and church taxes. Even peasants that did not own land had to pay property taxes on land that they rented.
