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 The birth of a nation is one that cannot be justified in a simple paragraph. However, what can be explained is the birth of one of this nation’s most controversial subjects: income taxes. After the revolt against the British the American federal government was elected and that’s where the history of income tax begins.

At this period in the history of income tax, there was no income tax. Collecting sales taxes on mostly import and sin items filled the pockets of the government. These sin taxes, however, were not sustainable in the long run. The first income tax in the history of income tax was put into law during the early 20th century. The first President to install an income tax was Abraham Lincoln, however, it was phased out after the end of the civil war.  The income tax was then instituted again in 1913 when congress passed a law to impose a rate of 1% to 7% on all incomes.

In order to pass the income tax system, the 16th amendment had to be added to give the federal government the overall right to collect the taxes. Presidents Roosevelt and Taft were in a bitter debate over the subject, however, eventually worked it out in the systems over time. In today’s government taxes make up for a substantial part of government income. These taxes are spent to keep everything from wars to social networks afloat. Through the ages of income tax there has been massive heated debates about their use and the amount of money that will entail. While it would be nice for these arguments to fall to the wayside, it is unlikely that they ever will. Taxes are an integral part of our system and will be here to stay for the long future.

This Financial Services article was written by Colby Almond on 3/23/2010