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Thepotemich [5.8K]
3 years ago
13

It is 1902. I make $45,000 per year (i am rich). How much do i own in federal income taxes?

Social Studies
1 answer:
Schach [20]3 years ago
4 0

The answer is: You do not own anything in federal income taxes.

The first personal income tax was established in 1861 as a way to pay for the American Civil War. The tax rate was 3% on incomes above $600, rising to 5% to income about $ 10,000. This tax was repealed in 1872.

A new tax was enhanced in 1894 but it became impractical due to some problems with its apportionment. Congress was able to impose a tax only if the law apportioned that tax among the states according to each state's census population.

<em>The  federal tax was deemed impractical till the year 1913, </em>when the 16th Amendment established new rules for paying federal income tax.

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<u><em>I hope this helps and have a good day!</em></u>

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