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How did we pay the federal government before income Tax in 1934?
Before the introduction of the federal income tax in 1913 (not 1934), the US federal government raised revenue in a variety of ways:
- Tariffs: The government levied taxes on imported goods, which was a major source of revenue throughout the 19th century.
- Excise taxes: The government also taxed specific goods and services, such as alcohol, tobacco, and certain luxury items.
- Land sales: The government raised revenue by selling public lands to settlers and developers.
- Customs duties: The government collected taxes on goods that were shipped from one state to another.
- War bonds: During times of war, the government sold bonds to raise money for military expenses.
It's worth noting that the federal income tax was initially introduced as a temporary measure to fund the Civil War, but it was later made permanent with the passage of the 16th Amendment to the Constitution in 1913.
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