1. Before there was a federal income tax, what taxes did Americans have to pay?
- Before federal income taxes, the taxes considered federal income taxes were many taxes created in the 1920s and 1930s including that were estate tax, gift tax, and social security taxes.
2. Explain why tariffs are considered regressive taxes.
- Tariffs are to be considered regressive taxes because the average shares of income sources are burdened by tariffs, higher and lower-income taxpayers.
3. Describe the first institution of the income tax in the United States, the reason behind it, and what happened to it.
- The first institution of income taxes in the U.S was created in 1861 during the Civil War as a mechanism to finance the war's efforts. As well as, Congress passing the Internal Revenue Act in 1862 which creating the Bureau of Internal Revenue, a predecessor to the modern day IRS.
4. Even though the amendment that allowed income tax was passed again in 1913, what events led to its being enforced among all Americans?
- The case of Pollock v. Farmers' Loan & Trust Company was when the Supreme Court ruled that all taxes were unconstitutional.
5. How did the government try to influence citizen’s views of paying income tax? Would this have worked for you?
- The government's way of trying to influence the citizen's view for paying incomes taxes was to try to convince them of some of their purposes of taxes with advertising while keeping their ulterior motives disclosed.
6. How can the government drive their policies using income tax?
- The government can drive their policies using income taxes by driving the idea of using income taxes for schools, technology investment, and educations.
