The first United States income tax was implemented by President Lincoln from 1862-1872, to raise money for expenses brought on by the Civil War. The income tax contained a three percent tax on incomes of six thousand to ten thousand dollars, and a five percent tax on individuals with income above ten thousand dollars.
Congress renewed the income tax in 1894, but since it was a direct tax and was not distributed based on state population, it was believed to be unconstitutional and was removed by the Supreme Court a year later.
In 1909, President Taft recommended Congress pass the Sixteenth Amendment to the constitution giving the United States government the ability to tax income without assigning burden based on state population. This law …show more content…
The first was the Revenue Act of 1942, President Roosevelt stated it was, "the greatest tax bill in American history" (Historical highlights of the IRS, 2015). This bill included deductions for investment and medical expenses, raised taxes, and increased the number of people required to file income tax. A year later, in 1943, the Current Tax Payment Act was passed by Congress, requiring employers to pay taxes withheld from employee wages on a quarterly basis. Then, in 1944, Congress passed the Individual Income Tax Act, which added the standard deductions to Form 1040. Ten years later, in 1954, the filing deadline was changed from March 15th to April 15th for all individual income tax …show more content…
(Income tax, 2015)
In 1986, the Tax Reform Act was signed into law by President Reagan. This act contained three hundred conditions and was one of the most important pieces of tax lawmaking in thirty years (Historical highlights of the IRS, 2015), full implementation of this act required three years. The Tax Reform Act also added all existing tax laws to the tax code for the third time since the Revenue Act of 1918 was applied, and lowered the maximum marginal tax rate for individual income tax returns from fifty percent to twenty-eight percent.
Limited electronic filing for individual income tax returns began in 1986. Starting in 1992, electronically filed returns were allowed for taxpayers who owed taxes to the IRS. As of 2003, over forty percent (almost fifty-six million) of individual income taxes are filed online each
Congress renewed the income tax in 1894, but since it was a direct tax and was not distributed based on state population, it was believed to be unconstitutional and was removed by the Supreme Court a year later.
In 1909, President Taft recommended Congress pass the Sixteenth Amendment to the constitution giving the United States government the ability to tax income without assigning burden based on state population. This law …show more content…
The first was the Revenue Act of 1942, President Roosevelt stated it was, "the greatest tax bill in American history" (Historical highlights of the IRS, 2015). This bill included deductions for investment and medical expenses, raised taxes, and increased the number of people required to file income tax. A year later, in 1943, the Current Tax Payment Act was passed by Congress, requiring employers to pay taxes withheld from employee wages on a quarterly basis. Then, in 1944, Congress passed the Individual Income Tax Act, which added the standard deductions to Form 1040. Ten years later, in 1954, the filing deadline was changed from March 15th to April 15th for all individual income tax …show more content…
(Income tax, 2015)
In 1986, the Tax Reform Act was signed into law by President Reagan. This act contained three hundred conditions and was one of the most important pieces of tax lawmaking in thirty years (Historical highlights of the IRS, 2015), full implementation of this act required three years. The Tax Reform Act also added all existing tax laws to the tax code for the third time since the Revenue Act of 1918 was applied, and lowered the maximum marginal tax rate for individual income tax returns from fifty percent to twenty-eight percent.
Limited electronic filing for individual income tax returns began in 1986. Starting in 1992, electronically filed returns were allowed for taxpayers who owed taxes to the IRS. As of 2003, over forty percent (almost fifty-six million) of individual income taxes are filed online each