Capital Gains Tax During The Civil War

1599 WordsOct 19, 20167 Pages
Tax began in America during the Civil War when congressed passed the Revenue Act of 1861. This was a tax on personal incomes to help pay the wages of the ongoing war. From this time different acts have been included and repealed on capital gain and taxes. From the past to current, the United States has shown the importance capital gains tax. This paper will give a brief history of how capital gains tax began in America, where the United State is now, pros and cons for arguments for and against capital gains tax and how America stacks up to other countries. Capital gain taxation in America has been around since the Civil war when a tax on income began and a rise in taxing capital gain started. After many repeals and acts about taxation, the ratification of the Sixteenth Amendment came about which allows Congress to levy an income tax without apportioning it among the states or basing it on the United States Census (gov.) Between 1913 and 1922 taxes on capital gain ranged from the top rate of 7 percent and 12.5 percent being held at least two years. (Capital gain tax) Next came the Tax Reform Acts of 1969 and 1976. The Tax Reform Act of 1969 set a 10 percent minimum tax not including gains, and put a limit on alternative tax up to $ 50,000 of gains. (Capital gain tax) The next Act of 1976 further increased capital gain taxes by increasing the tax rate to 15 percent. By 1978 the maximum tax rate reached almost 50 percent, which caused for Congress to reduce capital gains tax

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