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War of 1812
Due to the high cost of the War of 1812, the government began taxing jewelry, precious metals, and watches. -
First Direct Taxes
In 1813, Congress created direct taxes on land, property, and products. -
First Income Tax
Due to the Civil War, Abraham Lincoln created the country's first income tax. -
Supreme Court Decisions
In 1895, the Supreme Court ruled that you could not create income taxes without dividing it based on population. -
Sixteenth Amendment
In 1909, the Sixteenth Amendment was passed, in which the federal government could directly collect taxes from individuals. -
WWI's Effects
Due to WWI, taxes on the super-wealthy increased drastically, up to 77%. -
FICA Creation
Franklin Delano Roosevelt ratified FICA in 1937, creating the deduction on pay stubs. -
WWII Ups the Ante
WWII upped the top marginal tax rate all the way up to 94%. -
JFK's Revolutionary Idea
John F. Kennedy was the first President to push for tax cuts, dropping the highest marginal tax rate from 91% to 77%. -
Reagan's Tax Cuts
Ronald Reagan's tax reform bill cut the highest marginal rate to 38.5%, consolidated tax brackets, and simplified tax code.