Friday, April 20, 2012

History of Income Tax in the United States


The story of how the United States wound up with the income tax is the story of two wars, a Supreme Court justice on his death bed, and Donald Duck. It’s also the story of how the government overcame three obstacles. Obstacle No. 1 was Logistics — How do you make sure people pay? Obstacle No. 2 was The Constitution — In the 19th century, the income tax fell almost exclusively on the rich who, as it turns out, had some pretty good lawyers.

Obstacle No. 3 was The Love — Until World War II, the income tax was levied only on the rich. But wartime spending meant the government needed money, and ordinary folks are now asked to pay. The government needed Donald Duck. In a movie from 1943, Donald Duck marches around his house, listening to the radio and filling out his tax form. Occupation: actor. Dependents: three (Huey, Dewey and Louie). This wartime patriotic motivation campaign worked. Maybe we didn't love the income tax. But we paid it. [Copyright 2012 National Public Radio]

To learn more, read the NPR news story called “FromAbe Lincoln To Donald Duck: History Of The Income Tax” dated March 22, 2012.