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

Do you ever wonder what the United States used to look like? How different was it from today? It seems that nowadays that the factors between states differs based on things such as location or what kinds of people live there. Before the Civil War, the economy, climate, geography, culture, etc was based off of whether a state was free in the North or enslaved in the South. People never really think about what the states used to be like and how it has grown to what we know today. The Northern and Southern states differed in many ways such as climate and geography, economy, and culture.

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

From its establishment until the Civil War, the United States remained divided between the Southern slave states and the Northern free states. This issue became more prominent and problematic as new territories applied for statehood and occasionally tipped the balance of free and slave states. In 1820, the Missouri Compromise established a line at 36 degrees 30 minutes - the northern boundary of Missouri - that allowed slavery south of the boundary line and prohibited it to the north. However, the admission of California as a free state, despite it being divided by the 36°30' line, as well as the establishment of popular sovereignty - the ability of the citizens of the states to vote whether it would be a free or slave state - in Kansas

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

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 North and the South have always had different viewpoints since the establishment of the original Thirteen Colonies. Their economic differences directly affected and shaped how the North and the South thrived in the early stages of American history. The North’s and the South’s economic views molded how their political and social viewpoints established, from the Southern states agricultural-oriented society, to the Northern states industrialized culture. The Northern states relied heavily on immigrants as an economic workforce.

Everyday, American citizens are under obligation to pay their taxes in order to be classified as an upstanding citizen; however, the efficiency and fairness of America’s taxation system is a controversial topic which, in truth, places many hard-working Americans at a disadvantage. More often than not, tax reform is volleyed and utilized as a tool in elections rather than being addressed as the problem it is. In addition, the current system places many young people, namely college bound students, in a difficult situation in regard to financial assistance. While efforts toward taxation reform have been made, further progress and transformation are necessary in order to assist in the relief of inequity.

The north supported tariffs because they benefited industrialization. The south opposed tariffs because it taxed imported goods. Most of the south purchased imported goods. All in all, the north and south had contrasting economical

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 sides were divided about state’s rights but, states and smaller governments in both regions divided power between an executive branch, a legislative body, and the judicial branch. Both economies relied on farming, and both used similar ways to work the land. The North had more industrialization, farming factored just as heavily into its economy as in the South.

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

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).

One of the major purposes of taxation is to redistribute income. The government aims to collect from earning of residents and distribute it to those who are incapable for supporting their families. The main benefits offered to families in New Zealand, with Children less than 18 years of age, are the working for families’ tax credit and parental leave. These tax credits provide income tested benefits to families with children at home who are under 18. There are different criteria put in place to check the eligibility of the individuals receiving the credit. The idea of family tax credit is to ensure that every child in New Zealand is bought up in stable environment where they feel safe and healthy. All payments are made to an eligible parent to help with the family 's day-to-day living costs. According to statistics New Zealand “1 in 4 children under the age of 18 live in households defined as medium or high risk, or those with more than 3 risk factors”. (Statistics New Zealand, 2012) These risk factors include low economic standard of living, poor housing problems, over crowded houses and limited access to facilities. For this reason, it is duty of the government to ensure that, every child in this country has access to a decent standard of living. This includes access to food, healthcare and education.

Just as an egg will vary from hen to hen, so do tax systems from country to country. Each country has its own rules and principles to levy taxes from its citizens and foreigners to whom it conducts business in order to support its operations. South Africa is no different. When a country’s own people conduct business, or foreigners invest or trade within its domestic jurisdiction, it is necessary for the tax system to balance carefully its domestic and international economic objectives. It is essential to understand how the taxation system is applied to residents and non-residents in order to maximize one’s own benefits through adequate tax planning. In South Africa, the law determines the tax system through which the Commissioner must oversee/enforce. Among all the tax acts, the Customs Act 91 of 1964, The Income tax Act 58 of 1962, and the VAT Act 89 of 1991 are the most important ones. South Africa employs a residence-based system. This means that, except for certain exclusions; residents are being taxed on their worldwide income regardless of where their income was earned. In other words, a resident of a particular country will be subject to the taxes of that country. Where as in the United States, all citizens, even if they are not a resident, may be subject to their worldwide income. South Africa has not always employed a residence-based system. Before 2011, a source-based system was being used. Income is taxed in the country where that income originates,

(Alternative version to first line “Just as an egg will vary from hen to hen, so do tax systems from country to country.”)