The first attempt to impose an income tax on America occurred
during the War of 1812. After more than two years of war, the
federal government owed an unbelievable $100 million of debt. To
pay for this, the government doubled the rates of its major
source of revenue, customs duties on imports, which obstructed
trade and ended up yielding less revenue than the previous lower
rates.
And to think that the Revolution was started because of Tea
Taxes in Boston?
Excise taxes were imposed on goods and commodities, and housing,
slaves and land were taxed during the war. After the war ended
in 1816, these taxes were repealed and instead high customs
duties were passed to retire the accumulated war debt.
What is Taxable Income?
The amount of income used to arrive at your income tax. Taxable
income is your gross income minus all your adjustments,
deductions, and exemptions.
Some specific taxes:
Estate Taxes:
One of the oldest and most common forms of taxation is the
taxation of property held by an individual at the time of death.
The US still has Estate Taxes, although there are proposals to
do away with them.
Such a tax can take the form, among others, of estate tax (a tax
levied on the estate before any transfers). An estate tax is a
charge upon the deceased's entire estate, regardless of how it
is disbursed. An alternative form of death tax is an inheritance
tax (a tax levied on beneficiaries receiving property from the
estate). Taxes imposed upon death provide incentive to transfer
assets before death.
Canada no longer has Estate Taxes.
Most European countries have Estate Taxes, one prime example is
Great Britain which has such high Estate Taxes that it has just
about ruined the financial well-being of most of Britain's
Nobility which has been forced to sell vast Real Estate holdings
over time.
. Such a tax can take the form, among others, of estate tax (a
tax levied on the estate before any transfers). An estate tax is
a charge upon the decedent's entire estate, regardless of how it
is disbursed. An alternative form of death tax is an inheritance
tax (a tax levied on individuals receiving property from the
estate). Taxes imposed upon death provide incentive to transfer
assets before death.
Capital Gains Taxes
Capital Gains are the increases in value of anything (including
investments or real estate) that makes it worth more than the
purchase price. The gain may not be realized or taxed until the
asset is sold.
Capital gains are normally taxed at a lower rate than regular
income to promote business or entrepreneurship during good and
bad economic times.
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