As an accountant, Martin LeFevre is very interested in the American Tax System. He often reads about it and studies it. American tax laws have changed significantly in the last 100 years, but it’s important to understand the origins of the tax system.
Colonial Era
During the vast majority of American history, taxpayers did not really have much contact with the governmental tax authorities. The taxes came from tolls and customs duties. As ridiculous as this may sound today, the government did not really need to develop a way of obtaining financial resources.
The War
As usually is the case, war — the American War of Independence — has changed everything. England needed the money to fund their war against France, which led to the implementation of certain taxes that were imposed on American colonies.
After the War
After the adoption of the Articles of Constitution in 1781, the government realized that if they ever wanted to become a strong state, they could not rely on the help of foreign governments. They needed to create their own resources, which is why the Government came up with the very first version of an extensive tax system.
Another War, 16th Amendment
After the Civil War started, the Congress came up with the Revenue Act, which was basically the reintroduction of certain taxes to create additional revenue. Later, with the 16th Amendment, the government created the flat rate Federal income taxes. Many different tax rates were introduced since, as Martin LeFevre knows, and many more will likely be introduced in the future.
