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Income Tax Dbq

521 Words3 Pages

In the late 1800s, the U.S Treasury Department used sales tax and tariffs to fund its federal budget. A tax or tariffs are funds that are paid to the government that are added when something is bought that is considered valuable. Because of the Civil war, there was a financial burden on the country. In 1861, Congress reacted by implementing taxes on individuals. The first income tax started off by taxing individuals 3% making more than $800, while people who made more than that gave up a larger percentage. (1)This taxation period only lasted a couple of years and ended in 1872. In 1894, Congress re-authorized the income tax by taxing people 2% who earned more than $4000. (2)This caused a lot of controversy because some believed it was unconstitutional. …show more content…

The Conservatives knew that majority of the states would ratify the amendment; so they agreed with the proposal to grant legislatures from the states to vote on the new amendment. (5) On July 2, 1909, the 16th Amendment was authorized and passed by congress. By February 3, 1913, the amendment had gotten three-quarters of the states to approve it—the number required by the Constitution for ratification. “Certified by Secretary of State Philander C. Knox on February 25, 1913, it then became the 16th Amendment to the Constitution.”(6) The 16th Amendment stated that “Congress shall have the power to lay and collect taxes on incomes, from whatever sources derived, without apportionment among the several states and without regard to any census or enumeration.” (7) As a result of the 16th Amendment in 1913, because of exemptions and deductions, no more than 1 percent of the population paid income taxes. Tax rates started out at 1% and rose to 6% on income over $500,000. (8) With the 16th Amendment being passed through the necessary steps before becoming a constitution law, the federal government was allowed to enforce taxes on its citizens and people making money. This allowed the government to fund programs that included law enforcement, healthcare, and

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The tax cuts and tax reform experiments by President Coolidge and Secretary Mellon had significant impacts on both the national economy and taxpayers themselves. In the year 1920, the rate of the highest tax bracket sat at 73%, and the lowest at 4% (Lowest and Highest Tax Brackets and Tax Rates: 1920-1928). This was largely to pay off debts owed from World War l. But, as the country was being returned to normalcy after the war, Coolidge and Mellon took this as an opportunity for tax reform. They believed that the high tax rates were hurting the US citizen more than they were helping him, and thus an era of tax reformation was born.

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Wilson lowered the tariff rates 25% on average; it is to encourage the government to raise national revenue. He was also set the income tax become 1% in Sixteenth Amendment in early 1913. The 1% income tax was for people who have income exceeding $2,000 for a single taxpayer and exceeding $4,000 for a family. This rule was only taxed

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Representation in the Senate was conducted through the agreement of the Connecticut Compromise, which supported the idea of small states having equal representation as bigger states. Each state got two senators, regardless of population. Before the ratification of the 17th Amendment, Senators were appointed by state legislatures. This became contradictory due to its basis on equal representation by the people. The 17th Amendment changed that by allowing Senators to be elected by popular vote from the state that they are representing.

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290 Words | 2 Pages

Nevertheless, when the war was over, the government repealed the inheritance taxes. The Income Tax Act of 1894 was all about estate taxes as well. Gift taxes and inheritance taxes as part of income were subject to tax, a decision made by the legislation. This decision was significant and had a huge role in the Sixteenth

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Were The Colonists Justified In Declaring Independence Essay

539 Words | 3 Pages

The colonists wanted representation when it came down to being taxed, but the British government would not allow it. The government wanted full control over the people, so they made sets of acts and laws that were placed on taxation. For example, the Stamp Acts of 1765. These acts taxed all papers, pamphlets, newspapers, and cards. The Townshend Acts of 1767 were also a large part of taxation.

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Preceding the American Revolution, American pilgrim were being saddled by British Parliament abroad while having no agents in government. This shock brought forth the trademark "no tax imposition without any political benefit". This outward dissatisfaction at British control over American settlers started the upset, in which the United States was established. Later down the authentic course of events, amid the Civil War, Congress passed the Revenue Act of 1861, which set up the primary ever individual wage impose. The demonstration was ruled unlawful, at that point switched 1913.

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The war with Great Britain was meant to end these taxations. Great Britain was trying to make us believe that we were paying for the debts, but really, they were taking our money and spending it while we were just getting poor. "We contended with Great Britain—some said for a three-penny duty on tea, but it was not that. It was because they claimed a right to tax us and bind us in all cases whatever. "We started a war with Great Britain because we wanted to end this taxation, and now that we are a lone country, the Constitution will tax us

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638 Words | 3 Pages

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533 Words | 3 Pages

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