When Did Congress Start Income Taxes ?
The U.S. government has been collecting taxes ever since the Congress came into existence the first time in its history. The concept of tax is not new to the world and has been around since ancient times. However, today we pay tax in a more organized way. |
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google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad); When did Congress start putting tax on income earned? The first declaration of income tax came on August 5th in 1861. The main reason for imposing the tax on income earned was to collect funds for the ongoing Civil war. After the Revenue Act of 1861 was signed, the income tax was implemented. The statement was made at the first article of eighth section under the first clause in the U.S. Constitution.
However, the government stopped implementing it after the Civil war ended. It was resumed again in the 1890s. It stopped again and was then reinstated. This phase continued for quite a few years until income tax was ratified in the Sixteenth Amendment in the year 1913.
As of today, the government follows the income tax provisions that were amended in the Internal Revenue Code of 1986. However, today the Congress alone cannot impose taxes and their rights are limited.
No one knows why the Congress started imposing income tax after a long break. There was no war or pressure to do so. However, the decision mainly came for the overall development of the country. During the early 19th century, America was experiencing an innovation boom and the country needed funds in several areas.
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