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Internal Revenue
Allen Bramhall
Internal revenue is the funds collected by the government for the government's maintenance. The government collects the funds from citizens. We call those fund taxes. We call the agency directed to collect those funds the Internal Revenue Service.
In 1862, the Congress and Abraham Lincoln created the Commissioner of Internal Revenue. At the same time, they enacted a tax. The tax would supply funding for the Union Army in the Civil War. By the end of the war, 21 percent of war revenue was raised through this tax.
This tax was supposed to be temporary, to be rescinded in 1866. No such luck. The tax finally expired in 1872. It helped pay for reconstruction of the south, railroads, and other necessities.
In 1913, Congress enacted the 16th Amendment, giving Congress the power to assess taxes. The logistics of processing tax forms proved huge, and it took the IRS time to develop appropriate procedures. It took two years to process the 1917 tax returns.
Though few people like paying taxes, these funds no longer pay for wars but for the entire infrastructure of the country. Rather than a duty, it could be consider a right to pay taxes.
It is well known that Al Capone was convicted of tax evasion rather than the for the more brutal crime for which he is famous. The IRS holds special powers.
In 2006, the IRS began outsourcing collection to private concerns. This instigated an uproar as people worried about the security of personal information. In 2009, the IRS stopped outsourcing collection.
Some states in the Union collect revenue through sales tax. Other states eschew sales tax, but must find funds somehow. High property taxes, or taxes on luxury items are ways to gather revenue. These methods taxes maintain the states and the country.
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