The North And South's Tax System: A Comparative Study

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).

CHAPTER 21 PARTNERSHIPS SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic | |Edition |Edition | | | | | | | | | | | | 1 LO 1 Partnership definition New 2 LO 2 General partnership versus LLC New 3

The Federal government placed outrageous taxes and tariffs on imported and exported goods, which effected the Southern agricultural states to a much greater extent than their Northern industrial counterparts. The Federal government also included a property tax on slave labor. Somehow over almost one hundred years of debate in the United States as to how to classify and count the enslaved population, the Federal government still felt that even though slavery was immoral they had better tax those sinful slaveholders. How dare they reap the benefits of free labor while not shouldering the heavy burden of excess taxes? James Madison had some very strong words at the 1829-30 Virginia convention when he speaking, “He not only refused to accept the power of a nonslaveholding majority to decide how to tax his “species of property,” but he also revealed his resentment of the idea that he should pay higher taxes because some northerner claimed to have cleaner

The Revenue Act of 1862 is the first instance of income tax in America. It imposed a progressive income tax rate on Union citizens in order to raise money for the war effort against the Confederacy. http://money.howstuffworks.com/personal-finance/personal-income-taxes/income-tax.htmThe income tax was abolished in 1872, declared unconstitutional in 1895, and then passed as an amendment in 1913.http://www.archives.gov/publications/prologue/1986/winter/civil-war-tax-records.html Cite everything above! The 16th amendment states “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.” (YOU NEED

Hamilton envisaged America as an industrialized powerhouse, while Jefferson imagined a pastoral setting for America’s future. These dissimilar economic orders came to characterize the North and the South. However, the Northern and Southern economies, existed largely independent of one another despite their superficial connection under the Union flag. The South made its profits from exports while the North relied on manufacturing to prosper. As a result, both regions developed individualized pecuniary interests that demanded the aid of the government to facilitate growth. Inevitably, Northern desires for protective tariffs, export taxes and internal improvements drove the South away because these policies benefited factory owners and hurt plantation

The economic and social differences between the North and South made many people discontent. In the North the Federalists favored a strong federal government. The Federalists were ran by George Washington, Alexander Hamilton, and John Adams. Their economic policy favored trade and manufacturing. The ideal citizen was the small businessmen. As for foreign policy, they favored Great Britain. In the South, Republicans favored a weak federal government, but strong states. The Republicans were ran by Thomas Jefferson and James Madison. Their economic policy favored agriculture. The ideal citizen would be small farmers, and they favored France when it came to foreign policy. The industrial sector driven economy of the North was much better than the agriculture driven economy of the South (Naik 1). The South wanted Slavery for their plantations, and the North

Tax reforms started in 1916 when the Wilson administration decided to cooperate with a group of insurgent democrats on war time financing, which was majorly progressive taxation. This was important because it led to attacking the wealthy, special privilege, and public corruption. The administration embraced this taxation as “means to achieve social justice.” Another major element to Wilsons administration was redistributional taxation. This helped drive between socialism and unmediated capitalism. The major debate at the time was over the question, “ What stake does society have in corporate profits?” The debates outcome created “soak-the-rich” income taxation. Wilson signed the Revenue Act of 1916. This was the first tax on personal incomes.

In 1861, Lincoln levied the first federal income tax by signing the Revenue Act. Needing cash with which to fund the Civil War, Abraham Lincoln and the Congress agreed to impose a 3 percent tax on annual incomes over $800.00. The wording of the Revenue Act was broadly written to define income as a monetary gain derived from any kind of property, or from any professional trade, employment, or vocation carried on in the United States or elsewhere or from any source whatever. (A&E Television Networks, 2014)

Then there is the Internal Revenue act of 1861, which increased income tax rate. This assured us that the government would have a, “reliable source of income to pay the interest of war bonds” (119). In addition to that, we have the Subsequent Revenue act of 1862 and 1864, which allowed for progressive tax bracket. This act had a tax system that put a tax on everything, for example, medicines, yachts, and etc. The Morril tariff Act of 1860 and 1861 was a reform in which the tax was doubled on items in which customs tax could be collected. Furthermore, the National banking Acts of 1863 and 1864 encouraged people to carry out national currency and national charters. Provision of the 1864, which executed a 10 percent tax on the banknotes of the states. Because the tax base grew by a significant amount a Bureau of Internal Revenue had to be created to control and regulate the tax needs.

In this paper I explore the relationship between the tax structures of South Carolina and Texas. Through research into tax rates, tax brackets, and the different types of taxes used to create government revenue in the state, I seek to explore the benefits and detriments that the differing tax structures bring to taxpaying citizens in the state and to the business environment in each of the states. I researched taxes placed on individuals, in state businesses, and multistate businesses. Based on the research I concluded that Texas is the better state for business activity with a higher economic growth projections and a top ten rating of Forbes list of top states for business. South Carolina, however, does have benefits for multistate corporations due to a recent change in apportionment formulas and clear Supreme Court Rulings.

We believe that the economic differences between the North and South were not the main cause of the war. Alternatively, we believe that there were other greater differences between the North and the South that foreshadowed the war, such as slavery. Slavery was a debate between the North and South that grew as the years went on. Slavery was embedded into the countries roots, with slaves being imported into the colonies since the late 1650s. Economic differences had little to no effect on how the North and South began to debate the topic of slavery, as northern abolitionists only had one idea on their mind: ending slavery. So, when you put slavery against economic differences, it does seem like economic differences played a microscopic role in

The tax, which got to be law in the spring of 1828, set high obligations on merchandise imported into the United States, and it did make major financial issues for the South. Compounding an already painful situation, the law had been conceived to secure makers in the Northeast.

The economical reason the south wanted to succeed from the nation was the addition to laws that only benefitted the northern states. In the south there was a plantation based economy, this means the economy was solely based on agriculture. In the south they would export there goods, mostly cotton, to other countries and the rest of the United States. In the north the economy was based on industry. This means they would use resources from other places, such as the south for cotton, and create products useable by the rest of the nation and other countries. In 1828 there was a tariff passed on imported goods. A tariff is a tax that is placed on goods from outside countries. This was passed to promote the buying of products in the U.S. In the south

According to the assignment, my family of four must live at the federal poverty level of $24,300 per year, which equates to $2,025 per month; however, that is gross pay. After taxes, my family’s disposable income is $1,863, which I calculated using federal and state tax tables in Quickbooks accounting software. After tithing 10% ($203) and saving 10%, my remaining disposable income is $1,457 per month. A breakdown of the use of this monthly amount follows:

A systematic study of both northern and southern opinion as expressed in their newspapers, speeches, diaries, and private letters, gives irrefutable evidence in support of this assertion. Their ideology was democratic and identical. However, theoretical adherence to the democratic principles, as veil we know all too well in these days of plutocratic influences in our political life, is not sufficient evidence that democratic government exists. I believe that I shall not be challenged in the assertion that the economic structure of a section or a nation is the foundation upon which its political structure must rest. For this reason, therefore, it will be necessary to know what the economic foundations of these sections were. Was the economic structure of the North such as to support a political democracy in fact as well as in form? And was the economic structure of the South such as to permit the existence of free government? Time does not permit an extended treatment of this subject; it will be possible only to point out certain conclusions based upon recent research. By utilizing the county tax books and the unpublished census reports a group of us conducting a cooperative undertaking have been able to obtain a reasonably accurate and specific picture of wealth structure of the antebellum South, and to some extent that of the other sections. We have paid particular