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Paper Topic:

The United States Income tax

Running head : UNITED STATES INCOME TAX

United States Income Tax

MACROBUTTON NoMacro [Insert Names of Author (s ) here]

MACROBUTTON NoMacro [Insert Institution information here]

Introduction

Income tax , in general is one of the ways how a government earns money Through it , institutions , roads , healthcare , facilities , etc . are funded . The United States of America has one of the most productive and effective income tax systems in the world as observed in its strong economies . In early 1700 's , the nation 's taxes majority came from internal taxes on sugar , tobacco , alcohol

corporate bonds and slaves Moreover , in 1817 , the Congress relied on tariffs on imported goods to fund the government projects . Meanwhile , in 1862 , Congress endorsed the first and official income tax law of the nation . It was based on the ideology of graduated taxation and /of withholding income at the cause ADDIN EN .CITE 5Histo ry of the Income Tax in the United StatesFebruary 2 2008Information Databasehttp /www .info .com /i pa /A0005921 .html "History of the Income Tax in the United States " 2007 ) This law is the antecedent of the modern taxation system in America . Since then , it underwent many amendments and revisions and the latest was signed in 2005 and 2006 which states that positive rates on capital gains and dividends lift the exemption level for the Alternative Minimum Tax and passed a new tax incentive designed to convince the citizens to save more for retirement

On February 13 , 1913 , the Sixteenth Amendment of the United States Constitution was ratified . Basically , it claims superiority over the Pollock v . Farmer 's Loan and Trust Co . The latter 's primary function limited the ability of the Congress to impose income tax . Because of such , the 16th Amendment was passed which allowed the Congress to levy an income tax without consideration to the State or the consensus ADDIN EN .CITE th Amendment to the U .S . Constitution : Federal Income Tax (1913 )2007February 2 2008http /www .ourdo cuments .gov /doc .php ?flash true doc 57www .ourdocuments .gov "16th Amendment to the U .S . Constitution : Federal Income Tax (1913 " 2007 ) Before this amendment was ratified , Charles Pollock - a stockholder employed by the Farmers ' Loans and Trust Co .-- d a petition to the U .S . Supreme Court after ineffectively suing the company in various federal courts to hinder it from contravening its fiduciary duties by filing returns for and paying a federal income tax It (the tax ) was imposed upon the income that the company earned which includes interests it received from income-producing real estate bonds in New York City . ADDIN EN .CITE 5Pollo ck v . Farmers apos Loan and Trust CompanyFebruary 2 2008Net Industrieshttp /law .jrank .org /page s /9269 /Pollock-v-Farmers-Loan-Trust-Co .html "Pollock v . Farmers ' Loan and Trust Company 2008 ) He accused that the Income Tax Act of 1894 was unconstitutional because it was an undeviating tax upon the property itself . In the end the Supreme Court ruled that the Income Tax of 1894 dishonored the Constitution and that the taxes...

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