April 15 has become synonymous with Tax Day in the United States.

But Why?

1. In 1861, The First Federal Income Tax was levied
   • During his first year in office, President Abraham Lincoln introduced the first federal income tax. On August 5, 1861, he enacted a three percent tax on households earning over $800 per year (equivalent to approximately $23,500 in today’s inflation-adjusted terms). This tax was implemented to fund the Union’s efforts during the Civil War.
   • The tax became law in 1862 and was known as The Revenue Act of 1862. However, it was later repealed in 1871.

The 16th Amendment affects Tax

• In 1909, the groundwork for today’s system was laid. The 16th Amendment to the Constitution solidified the federal income tax program.
• Despite a brief trial for a new system in 1894, it didn’t pass Congress due to issues related to state sizes. However, by 1913, both states and the federal government agreed on the program.

1. • The Sixteenth Amendment granted Congress the authority to impose income taxes on all forms of income without regard for demographics and without apportionment among states. Prior to this amendment, most federal revenue came from tariffs, not direct taxes.The amendment aimed to address the direct tax dilemma related to Article I, Section 8 of the Constitution.
   Background:
   • In the late nineteenth century, various groups, including the Populist Party, advocated for a progressive income tax at the federal level.These groups believed that tariffs disproportionately taxed the poor, and they favored using the income tax to shift the tax burden onto wealthier individuals.

In summary, the Sixteenth Amendment revolutionized the federal system, enabling the collection of income taxes directly from individuals and entities without the need for state-by-state apportionment.

 Tax Day Becomes April 15 in 1955

• Initially, tax day had a March 1 deadline in 1913, but it shifted to March 15 without a specific reason.
• Finally, in 1955, April 15 was established as the new and lasting deadline. The change was instituted to give taxpayers an extra month to recover from Christmas expenses.

So, while organizing your taxes may feel daunting, remember that it’s a civic duty with a rich history dating back to the early 1900s. (and you can always file for an extension).