The Income Tax Act

There have been many taxes and tax laws placed on the American public since the very first tax in 1862 to support the Civil War. However the Sixteenth Amendment of 1913 is what actually preceded the Internal Revenue Code as we know it today. Taxation has always been a problem in this country.

• The Income Tax Act basically gives the government the right to collect a tax from individuals and businesses from their incomes without apportionment among the states and with no regard to any census or enumeration.


• There are some states that have no income tax of their own but the citizens of those states still must pay a federal income tax levied by the federal government.


• The purpose of the income tax is to provide the government with funds for its annual budget. These taxes are necessary to maintain the free market system of the United States.


• This income tax is not only levied against the citizens of the country it is also imposed on all businesses as well. Both individuals and companies have certain rules regarding the paying of taxes. They have different deductions and quirks they must abide by as well.


• One of the definitions of taxes is that they are tariffs paid on one’s net income after the individual or the company takes allowed deductions for various expenses and payments and other allowable deductions.


• There is no true understanding of the tax laws as they are forever and continually being tested and changed by legal cases going through our legal system. There is much talk as of today of changing the entire system that has been going on for years. It is basically the largest political ‘football’ that has ever been tossed around.