Fun-to-Know Facts About Income Tax
It’s that time of year again when harried Americans are gathering tax forms, digging up receipts and dreading what they may owe Uncle Sam this year—or dreaming about how they will spend their refund. Either way, you may find some diversion in a few of the facts behind the tax. You Can Blame Lincoln - Honest Abe is best known for ending slavery, but the Civil War came at a cost—Lincoln paid the bill in part by instituting the first national income tax, a flat 3% for any American earning more than $800 a year (about $18,000 in today’s money.) The Revenue Tax Act of 1964, which turned out to be fairly tough to collect on, did withstand a Supreme Court Challenge but was repealed by Congress in 1872. It Moved in to Stay - The plan for more efficient national taxation bobbled around for a while in various iterations, but the 16th Amendment made it official in 1913. In its first year, fewer than 1% of Americans paid an income tax at the rate of about 1% of income....