why do we pay income tax ?

Question

would the country suffer if we got rid of the irs. what is the purpose of the irs

Answer 1

Lincoln added it in the 16th amendment because he needed money to fund the Civil War.

Answer 2

Because the government will fine / imprison / kill you if you don't.

The overriding purpose of an established government is that it continue and expand in power and authority.

Your taxes help make that happen. The IRS is the bag man for the government.

Answer 3

to fund the life of the lazy one in the society ( basically income benefits). we are ripe off portion of our income ( government vs. liberty and progress). I am talking socialism. When icome tax is taken away from our monthly or weekly wages, are we happy? No. Absence of liberty. Big government is all we see now days.

Answer 4

We pay income tax to fund government service and programs and also government salaries. The U.S. Military, NASA, FBI, CIA, Homeland Security, FDA, DEA, FEMA, HUD, FAA, Department of Transportation, Department of Energy, Education Department, etc. are all funded by taxes.

The first income tax was in 1861. The IRS, though it wasn't called the IRS at the time, was started in 1862. The income tax was allowed to lapse in 1872.

In the late 1800s, the nation was becoming increasingly aware that high tariffs and excise taxes were not sound economic policy and often fell disproportionately on the less affluent. Proposals to reinstate the income tax were introduced by Congressmen from agricultural areas whose constituents feared a Federal tax on property, especially on land, as a replacement for the excises.

The 16th amendment to the Constitution was ratified in 1913. The amendment was specifically created to override the Pollock ruling of 1895. Note that income taxes were collected, challenged and upheld as constitutional before 1895.

In October of 1913, Congress passed a new income tax law with rates beginning at 1 percent and rising to 7 percent for taxpayers with income in excess of $500,000. Less than 1 percent of the population paid income tax at the time. Form 1040 was introduced as the standard tax reporting form and, though changed in many ways over the years, remains in use today.

The 1916 Revenue Act raised the lowest tax rate from 1 percent to 2 percent and raised the top rate to 15 percent on taxpayers with incomes in excess of $1.5 million. The 1916 Act also imposed taxes on estates and excess business profits.

Needing still more tax revenue, the War Revenue Act of 1917 lowered exemptions and greatly increased tax rates. In 1916, a taxpayer needed $1.5 million in taxable income to face a 15 percent rate. By 1917 a taxpayer with only $40,000 faced a 16 percent rate and the individual with $1.5 million faced a tax rate of 67 percent.

Even before the United States entered the Second World War, increasing defense spending and the need for monies to support the opponents of Axis aggression led to the passage in 1940 of two tax laws that increased individual and corporate taxes, which were followed by another tax hike in 1941. By the end of the war the nature of the income tax had been fundamentally altered. Reductions in exemption levels meant that taxpayers with taxable incomes of only $500 faced a bottom tax rate of 23 percent, while taxpayers with incomes over $1 million faced a top rate of 94 percent. How would you like to make $1 million and only be able to keep $60,000? By comparison, the lowest tax rate today (including social security and medicare), is about 7.45%. The highest tax rate is around 37%.

BTW, there has NEVER been a court that has said that wages (money you earn from labor) is not income. In fact, several courts have said just the opposite.

In Central Illinois Public Serv. Co. v. United States, 435 U.S. 21, 25 (1978) the court said, "Wages usually are income..."

In United States v. Connor, 898 F.2d 942, 943-944 (3rd Cir. 1990), the court said, “Every court which has ever considered the issue has unequivocally rejected the argument that wages are not income.”

In United States v. Koliboski, 732 F.2d 1328, 1329 n.1 (7th Cir. 1984) the court said, "Although not raised in his brief on appeal, the defendant’s entire case at trial rested on his claim that he in good faith believed that wages are not income for taxation purposes. Whatever his mental state, he, of course, was wrong, as all of us are already aware. Nonetheless, the defendant still insists that no case holds that wages are income. Let us now put that to rest: WAGES ARE INCOME. Any reading of tax cases by would-be tax protesters now should preclude a claim of good-faith belief that wages--or salaries--are not taxable."

Answer 5

Why do we need taxes when they can just print as much as they want anyhow? They no longer have to have something backing up each dollar printed so they're worth what ever the public will accept!

Answer 6

The govt needs money -- given that it spends most of a trillion dollars per year.

Money comes from one of two sources -- taxes or loans.

Answer 7

You shouldn't be if the money you earn comes from Labor you performed. "income'" is what you profit from, as in Capital gains, real estate sales, etc. Labor for compensation is a direct exchange and no "profit" is derived.

"IRS loses challenge to prove tax liability"
Lawyer is acquitted after arguing income levy lacks legal foundation

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=56855

Answer 8

So that the Democrats can spend your money the way they see fit. After all, they feel it never was your money in the first place. It all belongs to them.

Answer 9

Gotta steal from productive people to pay for the nanny state.

Answer 10

Because we have to. Some of our tax money is used for worthwhile things. Peace