Raleigh NC Tax Preparation

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

Between 1868 to 1913, about 90% of the national government’s revenue was gotten from tax on whiskey and tobacco. While the Civil War was going on the government instituted a short income tax, but it was not until 1913 when the sixteenth Amendment was passed and enabled Congress to tax incomes “from whatever sources attained.” The initial 1040’s were due on March 1, 1914. There wasn’t any money withheld from paychecks and no money was sent away with the return. Every taxpayer’s computations were calculated by IRS field agents and a bill sent to the taxpayer on June 1st.

1766 – Leaders of the colonies got together to protest British taxes under the Stamp Act. This Stamp Act Congress, which it was called, was the beginning of the American independence movement and the beginning of the modern U.S.

1782 – The first Congress under the Articles of Confederation formed. This Congress did not have any powers of taxation.

1789 – America granted a newly formed Congress the ability to tax. Without taxing powers, the initial Congress of the United States scantly survived 7 years before being dubbed a failed attempt; the 2nd Congress, with taxation powers, is still functioning after more than two hundred years. If you are 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 raise revenue and curb drinking. In the western frontier whiskey was the basic mode of exchange, and the 25% tax was harsh. By 1794 the region was openly in revolt. The forerunner of the IRS was created to enforce the tax. Go here if you want help from a modern-day CPA firm in Raleigh, NC.

1832 – The national debt that remained after the Revolutionary War and the War of 1812 is paid off. The South does not see any reason for continued high import taxes that increase the price on goods for Southern consumers and promote industrial monopolies in the North.

1850 – John C. Calhoun of South Carolina warns Congress that the South could leave the Union due to the fact that the overly oppressive taxation in the South raised funds that ended up in the North, causing a massive shift in money from the South to the North.

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

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