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For example, the US switched permanently to income taxes in 1913. But why? What was the motivation? I understand that the US gov't obtained revenue from tariffs before that. What was wrong with the tariff system? Did it have a negative effect on the economy? FOR EXTRA STARS: What about other governments? When did they switch, why, etc. I'd love a web stie that has a list of countries and their revenue/tax schemes.

2007-07-23 07:02:17 · 3 answers · asked by L Dawg 3 in Politics & Government Government

3 answers

Initially, it was to fund military activities,and eventually to fund WW1. But the govt didn't eliminate other forms of taxes -- they just added an individualized income tax.

The reason is that incomes were easier to verify than sales, and incomes provided a more sustained and constant cash flow than sales -- which varied more with the economy.

2007-07-23 07:06:15 · answer #1 · answered by coragryph 7 · 1 0

That was the same year we went to federal reserve bank printing our money (and charging us interset for each dollar printed.)

Part 3 of this movie, gives you a good overview of the events around that time.
http://www.zeitgeistmovie.com/

The government needed a way to raise money to pay interest to a privately held bank that governs all our money and our economy....

2007-07-27 08:53:58 · answer #2 · answered by Kacy H 5 · 1 0

we have to have the taxes, to pay our country bill , its a working market government programs and in some way we all have used this money in our life's , people that work for the state get a check so where goes that money come from you taxed dollar.....

2007-07-31 04:28:34 · answer #3 · answered by greenonion 2 · 0 1

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