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A history of taxation
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Political authority has been used to raise capital throughout
history. In many pre-monetary societies, such as the Incan empire,
taxes were owed in labor. Taxation in labor was the basis of the
Feudal system in medieval Europe. In more sophisticated economies such as the Roman Empire, tax farming developed, as the central powers could not practically enforce their tax policy across a wide realm. The tax farmers were obligated to raise large sums for the government, but were allowed to keep whatever else they raised. Many Christians have understood the New Testament to support the payment of taxes, through Jesus's words "Render unto Caesar the things that are Caesar's". It is even recognized as a duty whether as a "telos" on merchandise or travelers (Matthew 17:25), an annual "phoros" on property tax (Luke 20:22;23:2), a "kensos" or poll tax (Matthew 22:17, Mark 12:14), or the tribute money of a temple-tax (Matthew 17:24-27). Other Christians, such as Christian anarchists, hold a contrary interpretation. There were certain times in the Middle Ages where the governments did not explicitly tax, since they were self supporting, owning their own land and creating their own products. The appearance of doing without taxes was however illusory, since the government's (usually the Crown's) independent income sources depended on labor enforced under the feudal system, which is a tax exacted in kind. Many taxes were originally introduced to fund wars and are still in place today, such as those raised by the American government during the American Civil War (1861-1865) and the telephone tax instigated at the start of World War I (War Tax Revenue Act of 1914). Income tax was first introduced into Britain in 1798 to pay for weapons and equipment in preparation for the Napoleonic wars and into Canada in 1917 as a "temporary" tax under the Income War Tax Act to cover government expenses resulting from World War I. |
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The current income tax in America was set up by Woodrow Wilson in
1913. It was called The Federal Income Tax and was deducted from
incomes at rates varying from 1-7%. But, since then, the American
Tax Code has been modified and new taxes have been added, especially
over the World War I and II periods. Since World War I, the American
Tax Code has increased in size four-fold. Tax farming, occurring
historically in Egypt, Rome, Great Britain, France, the Greater
Middle East and Greece, was the principle of giving the
responsibility of tax collection to citizens or groups, rather than
the government. In Arabic it is called Iqta, referring to a type of
tax farming practiced by the Seljuks, Mamluks and others. Tax farms
(portions of land) would be granted to those who had distinguished
themselves in the military or bureaucracy. The principle was
considered very effective for tax revenue collection. In many parts
of the world, including Europe, the Middle East and the Far East,
tax farming was responsible for state consolidation and an increase
in central autocracy. However, it suffered because the tax-farmers often abused the taxpayers for tax collection, despite being the most efficient means of gathering funds for the state based on land censuses. The Tax Farming system bears some resemblance to the Feudal European and Japanese system, as well as sharecropping in the American South after the Civil War. Tax farming also refers to the method of tax collection practiced in France during the days of the Old Regime (prior to Louis XVI). In essence individuals or companies paid the government for the right to collect taxes. Clearly such a system is open to abuse and corruption and the system of tax farming is usually seen as one of the causes of the French Revolution of 1789. |
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