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From 1791 to current there have been and will continue to be many different income tax changes. When the government first started taxing in 1791 it was not originally on income. The original taxes were on internal items such as tobacco, sugar, alcohol, slaves and items sold at auction. It was not until 1862 that the first income tax was charged based on an individual’s income. If you earned between three thousand and ten thousand dollars, than you were taxed at three percent of your earnings.
Major Tax Laws
The income tax was on again of again with taxes being assessed on goods again and a couple of brief trials with income tax. Many said that taxing on their income was unconstitutional and in 1913 that was changed. The sixteenth amendment made it possible for the government to tax Unites States citizens on their income and possible for the tax commissioner to levy taxes, take property and search out jail time for those not complying with the new law.
Tax Changes
Different changes have been made to the tax laws by many different presidents one to note though is a major tax cut that was made by President Reagan in 1986. He proposed the largest tax cut so far in the history of the income tax and it was to take place over five years.
There are many different reasons why income taxes were created and why some of the rules continue to evolve over the years. They will continue to change with economical booms and busts as well as with different goals of the US government.
