I first remember hearing about taxes when I learned about the Revolutionary War. My class seemed to spend hours on the infamous British Tea Tax that was made to hurt the colonists. But taxes as a concept have been around for far longer. Ancient Egyptians had scribes who would collect taxes from homeowners and give them back to their government. Citizens of ancient Greece would be required to pay taxes to fund wars. Taxation in society has always existed in one form or another. In homage to this 2018 tax season, we will delve into the history of taxes, as well as their importance in maintaining an economy.
Origin of taxation in America
When America was first colonized and settled into 13 colonies, it remained almost completely tax-free. Taxes eventually were imposed on the colonists by the British parliament. This sparked the Revolutionary War and opened the debate about whether Britain could tax America. Once America achieved independence, it cautiously set up a taxation system. The Founding Fathers outlawed direct taxation, but they had to create a system that allowed for government income through taxation. So tariffs and taxes on specialty items such as liquor, tobacco, and sugar were created.
Formation of the IRS
America did not see income tax until the Civil War. The war was much longer and more devastating than originally thought. Soldiers who left to fight for both the North and South assumed they’d be home within a month. They soon learned that was not to be the case. The income taxation was created to support war efforts. In 1861, Congress passed the Revenue Act. This was a flat tax of 3 percent for those with an income of $800 or more. The Revenue Act was not rescinded until 1871. However, it led to the creation of the U.S. Internal Revenue Service, or the IRS.
So what’s the point?
For anyone paying taxes and has grumbled what is the point, I promise there is one. Taxation is used to meet social goals, like funding public libraries or public schools. Tax money is also funneled into infrastructure and works toward maintaining roads. While there will always be a debate on what tax money should go to, this system is important. Without it, public education would not be funded, and government employees would not get a paycheck. Historic organized societies recognized the need for taxes and that has all funneled into our current taxation system.
Takeaway
Nobody likes paying taxes, but they are important. While there is a debate about how much a citizen’s income and property should be taxed, the government needs a form of revenue to maintain public access to education as well as the military. The formation of taxation can be traced back to ancient times, and shows that we are still connected to our original economy.
Have something to add to this story? Comment below or join the discussion on Facebook.
Header image: ShutterStock
