8/6/2019 taxbusi history of taxation

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Mark Emmanuel L. Abilo TAXBUSI

10800050

History of Taxation

Taxation, as we know it, already exists long before we developed our own sense of

government. In the earlier civilization, collections are being made from peoples properties to

satisfy the needs during a financial crisis and to increase the wealth of the rulers.

During the time of the Egyptian Pharoahs, the tax collectors were known as the scribes

who acquire contribution from the people to pay for the cost needed in building public artifacts

like monuments and temples. With this, it became easier for the Egyptians to attain their

leisurely lifestyle which is evidenced by their majestic infrastructures.

The Greeks also developed a system of getting revenues to pay for their wartime

expenses. No one was exempt from the tax which was called eisphora which the Athenians

imposed during war. However, eisphora is refunded once additional resources were gained by

the war effort.

In Rome, Ceasar Augustus imposed custom duties on imports and exports portoria.Being considered as the most brilliant tax strategist of the Roman Empire, Ceasar Augustus gave

cities the responsibility to collect taxes. He instituted an inheritance tax to provide retirement

funds for the military and established a tax on the sale of items for greater revenue.

During the fall of the Great Roman Empire, England became free of its control and

started to gain sovereignty. The Saxon kings imposed taxes, referred to as Danegeld, on land

and property. Custom duties were also put upon the imports and exports of the country.

Englands taxes were very progressive; the amount of which were based on the peoples

capacity to give. However, the public refused the system and the method was repealed.

Subsequently, the first development of modern income tax happened during the NapoleonicWars. Income taxes were used to finance warfare against France.

During the Colonial times of America, colonists were paying under the Molasses Act

which would thereafter be known as the Sugar Act in 1764. Because of the failure of the Sugar

Act to raise sufficient revenues, the Stamp Act was added in 1765 which imposed a direct tax on

newspapers and documents in the colonies.

Shortly after the revolution in the U.S., a direct tax was placed on citizens after drafting

the Constitution in 1787. The Union government found financial burdens for warfare, just by

using taxes based on tariffs so the government used income tax for emergency reasons.

The U.S. Congress in 1894 imposed a 2% tax on all people, after their demand for a

fairer rate, having an income of over $4,000. Yet the Supreme Court ruled that the law was

unconstitutional and did not bring income based on each state's population. This ended the

older form of U.S. taxation.