History of Taxes
The history of taxation likely interests you if you’ve ever wondered who invented taxes or why you have to pay taxes. Corporate income taxes were adopted in 1909 while individual federal income taxes were adopted in 1913. This occurred much later than it did in Great Britain, which implemented income tax in the 1800s and is often credited with inventing this type of taxation. However, as far as tax history goes, taxes in general have been around since virtually the beginning of time in one form or another.
Taxes are used to collect money from citizens in order to fund infrastructure, public services, and other expenditures taken on by governing bodies, such as military defense. As with many financial practices, income taxes have changed vastly throughout history. For starters, historical tax rates were much lower than those of today. The original federal tax brackets ranged from 1% to 7% whereas income tax brackets today range from 10% to 37%, depending on your filing status. However, these taxes are still put toward many of the same types of initiatives. While taxes are often viewed negatively, they are actually a large part of what affords the high-quality of life many of us enjoy across the U.S. Over the years, income taxes have risen and fallen, but one fact remains the same, many Americans are obligated to pay them every year. With the constant fluctuation in tax laws and rates, many taxpayers find it hard to keep up with these changes and find income taxes to be a major source of stress in their lives. Fortunately, help is available. Whether you’re trying to figure out whether you have to pay this year, how to do your income taxes, or how much you owe, Community Tax can help you figure it out.