Monday, April 15, 2013

The Ides of April

Today is Tax Day; You can just about hear the groan across the nation as this is said.
It's the 15th, the ides of April, as it were. Beware, as they say!

With the adoption of the US Constitution in 1789, the Federal Government was granted the authority to impose taxes on its citizens: duties, imposts, excises, etc to pay for the common defense and general welfare of the nation. The collection was left to the state governments in order to pay for the Revolutionary War with Congress levying taxes on spirits, tobacco, refined sugar, carriages, property sold at auction and certain legal documents. During the war with France, the US government imposed its first direct taxes on owners of houses, slaves, estates, a recurring tax using the value of the items as the basis for the tax. During colonial times, farmers often received land for free to encourage immigration. Local governments taxed with a "wealth" tax, believed to be a little below 1%. All these little taxes added up to pay for infrastructure, defense, safety.

Interestingly enough, it was President Thomas Jefferson, the quintessential antifederalist who would abolish this tax, and it would stand for the next ten years.

Nobody truly minds paying their "fair share" but the debate on what's fair is a crippling issue these days. But that's a story for another day.



 
 

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