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[Comrade Answers: Week 3]
July 29th, 2007Comrade Answers: Week 3
Can you explain what income tax is? How does the government get away with
billing people for making money?-ORBY!!
Income Tax is a tax that’s drawn from the income of people, businesses and other legal entities. In the United States, almost everything is considered Income and must be reported so that they can tax you. The exceptions include employer-paid health insurance and tax-exempt bonds.
The first Federal income tax was imposed (under Article I, section 8, clause 1 of the U.S. Constitution) during the Civil War, then again in the 1890s, and again after the Sixteenth Amendment was ratified in 1913.
The first implementation made sense, I’ll agree with that. The US had to pay for the Civil War efforts for something, and thus they inacted the Income Tax.
How do they get away with it? The constitution says they can.
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.Sixteenth Amendment
Further Reading:
History Of Income Tax
Income Tax Details
Legal bits involving Income Tax
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