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First Income Tax

July 1, 2014

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Profile America — Tuesday, July 1st. Income taxes first came to America 152 years ago today, when President Abraham Lincoln signed a bill levying a 3 percent tax on incomes between $600 and $10,000, and 5 percent for greater incomes. After helping finance the federal cause in the Civil War, the tax was rescinded in 1872. The income tax all of us know today dates to 1913, when the 16th Amendment to the Constitution was ratified, giving Congress the power to levy such taxes. About 146 million individual income tax returns are submitted annually, totaling more than $1.5 trillion. For those who dislike doing their own taxes, there are nearly 27,000 tax preparation offices around the nation. These services cost us nearly $10 billion a year to have our taxes prepared. You can find more facts about America from the U.S. Census Bureau, online at <www.census.gov>.

Sources:
http://www.robinsonlibrary.com/social/publicfinance/revenue/1862.htm

http://www.irs.gov/uac/SOI-Tax-Stats-Numbers-of-Returns-Filed-by-Type-of-Return-IRS-Data-Book-Table-2

http://www.irs.gov/uac/SOI-Tax-Stats-Gross-Collections-by-Type-of-Tax-IRS-Data-Book-Table-6

http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=BP_2011_00A1&prodType=table

http://www.ibisworld.com/industry/default.aspx?indid=1399



Source: U.S. Census Bureau | Public Information Office | Last Revised: June 26, 2014