Where did taxes come from and how have they changed? These slides highlights some of the important changes in our tax code throughout history. Brought to you by Intuit CPA Select, where your taxes are done by our accountants – online. https://turbotaxcpaselect.intuit.com
Text of The History of Taxes
Of The Tax Code The History
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The law creates the nations rst income tax: Incomes between $600-$10k = 3% tax Incomes between $10k+ = 5% tax 1862 President Abraham Lincoln signs a revenue producing measure to help pay for expenses caused by the Civil War.
View as an interactive 1872 The income tax was repealed.
View as an interactive 1894 Wilson Tariff Act revives the income tax, and the Bureau of Internal Revenue is created. was the highest possible tax rate. 5%
View as an interactive 1906 The rst 1040 was introduced 3 pages long (it is now over 200) Income Tax Rates: 50k= 1% 75k= 2% 100k= 3% 250k= 4%
View as an interactive 1918 Filing deadline is March 15. Internal revenue collections pass the billion-dollar mark.
View as an interactive 1930 The tax rate had climbed to 25%. 1932 The tax rate jumped to 63%. 1936 The tax rate jumped again to 79%.
View as an interactive 1945 More than 60 million americans pay tax. Internal revenue collections reach $43 billion.
View as an interactive 1976 President Ford becomes the rst to publicly release his personal income tax return. A few years after, President Nixon became mired in a scandal over whether he paid enough in taxes. Every president since Ford has released his annual claim.
View as an interactive 1981 Congress enacted the largest tax cut in U.S. history, approximately: $750 billion over six years. The tax reduction, however, was partially offset by two tax acts, in 1982 and 1984, that attempted to raise approximately $265 billion.
View as an interactive 1986 President Reagan signs the Tax Reform Act, the most signicant piece of tax legislation in 30 years. The top tax rate on individual income was lowered from 50% to 28%, the lowest it had been since 1916!
View as an interactive 1992 Taxpayers are allowed to le returns electronically.
View as an interactive 1997 President Clinton passes act which cut taxes by another $152 billion, including a cut in capital-gains tax for individuals, a $500 per child tax credit, and tax incentives for education.
View as an interactive 2001 President Bush signs a series of major tax cuts. The largest being the Economic Growth and Tax Relief Reconciliation Act of 2001. It was estimated to save taxpayers $1.3 trillion over 10 years.
View as an interactive 2006 The highest possible tax rate was: 35%
View as an interactive 2012 In 2012, President Obama has announced that he plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.
View as an interactive 2012 In 2012, President Obama has announced that he plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%. View the interactive timeline