No Tax Assessed On Personal Income

Because the U.S. does not have a Parliament, Congress is in charge of levying taxes, not the president. The enumerated powers, which can be exercised by Congress, are powers that are granted by the Constitution. The enumerated powers begin by stating: “To lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.” As the U.S. grew and as a requirement all states, they had to have an income so all of their residents could be provided the common good.

1862 - President Lincoln signed into law a revenue-raising measure to help pay for Civil War expenses. The measure created a Commissioner of Internal Revenue and the nation 's first income tax (Internal Revenue Service, 2013).

The top 1 percent of the wealthiest people in the U.S. pay a total of over 40 percent of all federal income taxes, which is more than the entire bottom 95 percent of all tax payers. Government programs are funded through Social Insurance Taxes that are the fastest growing source of federal income though it’s actually counted separately in special trust funds by the Treasury. Both federal and state governments combine these taxes that are used to pay for social programs such as social security, Medicare, and unemployment services. This type of taxation is a regressive tax, since lower income people end up paying more from their income than those with a higher income. Another federal tax is the excise tax, better considered a luxury tax for non-necessities, which include things like liquor, cigarettes, gas, and highways. Taxes that are imposed on imported goods so that there’s less foreign competition on the domestic market are called customs duties.

“When it came to levying taxes the Articles stated Congress could request states to pay taxes. The Constitution states Congress has the right to levy taxes on individuals” (Feldmeth, Greg D. "U.S. History Resources" http://home.earthlink.net/~gfeldmeth/USHistory.html (31 March 1998). “A federal court the Articles

"They say power to tax is a necessary part of every supreme legislative authority and that if they have not that power over America they have none and the America is at once a kingdom of itself" [Raising Money and Rising Anger. 22]. later many started complaining that the king had no right to tax them this much. Other than the Americans don't like their duty of being taxed the British were also being taxed as well. Colonist got used to their taxation within their own government.

4. The Federal income tax on corporations generates more revenue than the Federal income tax on individuals.

The main reason why they created this feature was to prevent citizens from being unfairly taxed like the colonist were by the British. However, this left the federal government weak economically. According to Placard C, “This created financial problems because states often did not pay what was requested of them by the federal government.” Without the power to tax citizens, the Congress did not receive enough money to hold up a strong government or efficiently manage the nation. This reveals how the government could not afford important needs in order to protect and support the nation, such as weapons or a military.

was eliminated in the United States Constitution, which allows the government to fairly tax every

Taxation by the government to it people is an important aspect of an American but this wasn’t the case when the U.S. Constitution was formed. At that time the U.S. government was not able to tax Americans because they feared that future legislators in Congress would overtax the people, just like the British king did. They might be had the right idea, but that doesn't mean there should be no taxes on the people. The only thing worse than an overly powerful central government is an unreasonably weak central government that can not respond to the needs of its people. That was one of the main issues the Founding Fathers argued about during the time period when The Article of Confederation was in place, whether we should have a strong central government by forming the constitution or whether we should keep the Article of Confederation and providing the state's government with more power than the federal government, this lead to two separate groups, the federalist and the anti-federalist.

Congress taxed states based on their population, rather than an individual’s income. Progressives believed people with a higher incomes should pay a higher percent of taxes, so those with lower incomes were able to pay a lower amount of taxes. The Sixteenth Amendment was passed and gave Congress the power to create a personal income tax, based on how much a person makes rather than

In July 1861, the Congress passed a 3% tax on all personal net income above $600 a year that is equitant to about $10,000 today. However, no revenue was ever raised because a second tax passed before the first was due on June 30, 1862. The war 's demand on resources made the earlier tax ineffective, and

• “The taxes for paying that proportion shall be laid and levied by the authority and direction of the legislatures of the several states within the time agreed upon by the United States in Congress assembled.” Articles of Confederation, Section VIII • Without a way to collect taxes , congress could not pay war debts or make a national budget. • “The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.” United States Constitution, Article I, Section VIII, Clause I • After levying taxes became a federal power

The origin of the income tax on individuals is generally mentioned as the passage of the 16th amendment, which was passed by congress on July 2,1909. The history of individual income tax in the U.S.A goes back to 1861. During the civil war, congress passed the revenue act of 1861, which included taxing on personal incomes to help pay the expenses of the war. This tax was repealed after the war. In 1894, congress made a flat rate federal income tax, but the U.S Supreme Court ruled it unconstitutional. During the following

The Sixteenth Amendment of the United States Constitution gives the United States government the right to tax income.

One of the main Problems in the Articles of Confederation was Congress didn't have the power to tax. In other words congress could not force taxation but could request states to provide a certain amount of money which was never fully given. The reasons congress needs taxes is so they have money to pay off debt, and improve other states. Without taxes nothing would be paid for and the U.S. would be in debt a very long time. However, an amendment was proposed to congress and it was passed. The proposed amendment is called the 16th amendment stating “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”