I just discovered your blog and will have to go back and read some of the other American stories after this one on taxes. You certainly have done your research, and I appreciate the information.
As far as I remember from my history and economics classes, the state of Wisconsin (incubator for the Republican and Tea Parties) was the first state to inaugurate an income tax. My state, Texas, seems very proud not to have one. Income taxes are considered to be progressive, meaning that they help provide equality by taxing the rich more as you illustrated in the article with the original intent of income tax in 1913. The gerrymandering of the income tax laws by many loopholes and private, personal tax breaks has led to the unfair burden on the shrinking middle class for taxes today. Sales taxes and moneymaking schemes like the lottery unfairly taxed the middle class and the poor because any income made is generally spent immediately and taxed. Thus, progressive taxation provides money for the government to pay for it while regressive taxation puts stress on those least likely to pay for government.
The fear of tax day and IRS audits, has caused many people seek out tax preparers to do their taxes for them. Payroll taxes take money from wage earners before taxes are due without paying interest. People who don't pay any taxes at all end up paying people to do their very simple taxes for them, take a high interest loan on the refund, and fill the pockets of those shysters who prey on them. Meanwhile, the rich have lawyers and accountants figure out ways to remove income from the books so they don't have to pay taxes at all.
If we are audited and the IRS finds that we owe taxes (taxes are so complicated that most Americans make mistakes or give up and cheat a bit on their returns), they can go back five years and charge horrendous interest rates on past due amounts.
As far as I remember from my history and economics classes, the state of Wisconsin (incubator for the Republican and Tea Parties) was the first state to inaugurate an income tax. My state, Texas, seems very proud not to have one. Income taxes are considered to be progressive, meaning that they help provide equality by taxing the rich more as you illustrated in the article with the original intent of income tax in 1913. The gerrymandering of the income tax laws by many loopholes and private, personal tax breaks has led to the unfair burden on the shrinking middle class for taxes today. Sales taxes and moneymaking schemes like the lottery unfairly taxed the middle class and the poor because any income made is generally spent immediately and taxed. Thus, progressive taxation provides money for the government to pay for it while regressive taxation puts stress on those least likely to pay for government.
The fear of tax day and IRS audits, has caused many people seek out tax preparers to do their taxes for them. Payroll taxes take money from wage earners before taxes are due without paying interest. People who don't pay any taxes at all end up paying people to do their very simple taxes for them, take a high interest loan on the refund, and fill the pockets of those shysters who prey on them. Meanwhile, the rich have lawyers and accountants figure out ways to remove income from the books so they don't have to pay taxes at all.
If we are audited and the IRS finds that we owe taxes (taxes are so complicated that most Americans make mistakes or give up and cheat a bit on their returns), they can go back five years and charge horrendous interest rates on past due amounts.
No wonder Americans fear April 15.
Ron
Regis