US_Internal_Revenue_Service

United States government branch that collects taxes and

enforces the tax laws.

For its first 138 years (1776-1913), the United States did not

have an income tax. All government taxes were collected as excise taxs on products, import/export taxs, and revenue taxes on items such as photographs, bank checks, stock certificates, wills, deeds, and other legal documents.

The Sixteenth Amendment to the UnitedStatesConstitution was ratified in 1913 and allowed for the creation of an income tax.

The first income tax only taxed the very very wealthy as it started with income over $??? at a tax rate of ? percent.

$??? is $??? in 2000 dollars.

The income tax was incrementally expanded by the US congress and now applies to almost 2/3 of the population. The lowest earning workers ($20,000 in 2000) pay no income taxes as a group and actually get a small subsidy from the federal government because of child credits and the earned income credit.

The upper 25 percent of wage earners (incomes over $50,000 in 2000) pay most of the income tax.