Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Between 1868 until 1913, almost 90% of the national government’s revenue was gotten from taxes on alcohol and tobacco. During the Civil War the government instituted a brief income tax, but it was not until 1913 when the 16th Amendment was passed and enabled Congress to tax incomes “from whatever sources attained.” The first 1040’s were due on March 1, 1914. There was not any money withheld from paychecks and none was sent away with the return. Every taxpayer’s taxes were calculated by IRS field agents and a bill mailed to the taxpayer on the first of June.

1766 – Colony leaders met to protest British taxes in place by the Stamp Act. The Stamp Act Congress, which it was called, marked the start of the American independence movement and the birth of the United States.

1782 – The first Congress under the Articles of Confederation met. This Congress had no ability to tax the people.

1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the first Congress of the U.S. barely lasted seven years before being dubbed a failure; the second Congress, with taxation powers, is still functioning after almost 300 years. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

1792 – Alexander Hamilton persuades Congress to pass an excise tax on whiskey to increase revenue and curb alcohol consumption. On the western frontier whiskey was the traditional medium of exchange, and the twenty-five percent tax was a bit difficult to deal with. By 1794 the area was openly in rebellion. The forerunner of the IRS was created to give the tax enforcement. Go here if you want help from a modern-day CPA firm in Raleigh, NC.

1832 – The national debt remaining after the Revolutionary War and the War of 1812 is paid off. The South sees no reason to continue high import taxes that increase prices for Southern consumers and increase the number of industrial monopolies in the North.

1850 – John C. Calhoun of South Carolina tells Congress that the South might leave the Union because the overly oppressive taxation in the South increased funds that were spent in the North, creating a massive shift in wealth from the South to the North.

Stay tuned for Parts 2 and 3 of the Timeline of US Tax Policy!

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