the history of taxes
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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.comTRANSCRIPT
Of The Tax CodeThe History
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The law creates the nation’s first 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.
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1872
The income tax was repealed.
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1894
Wilson Tariff Act revives the income tax, and the Bureau of Internal Revenue is created.
was the highestpossible tax rate.
5%
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1906
The first 1040 was introduced 3 pages long (it is now over 200)
Income Tax Rates:
50k= 1% 75k= 2% 100k= 3% 250k= 4%
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1918
Filing deadline is March 15.
Internal revenue collections pass the billion-dollar mark.
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1930
The tax rate had climbed to 25%.
1932
The tax rate jumped to 63%.
1936
The tax rate jumped again to 79%.
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1945
More than 60 million americans pay tax.
Internal revenue collections reach
$43 billion.
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1976
President Ford becomes the first 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.
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1981
Congress enacted the largest tax cut in U.S. history, approximately:
$750 billionover six years.
The tax reduction, however, was partially offset by two tax acts, in 1982 and 1984, that attempted to raise approximately
$265 billion.
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1986
President Reagan signs the Tax Reform Act, the most significant 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!
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1992
Taxpayers are allowed to file returns electronically.
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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.
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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 trillionover 10 years.
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2006
The highest possible tax rate was:
35%
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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%.
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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%.
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