Those Were the Days

A lthough it is often said that "nothing is certain but death and taxes," taxes as we know them are a relatively recent development.

The 16th Amendment to the Constitution, proposed by Congress in 1909 and ratified by the states in 1913, gave the federal government the power to levy income taxes. Before that, most of the government's revenues came from tariffs.

When the income tax amendment was passed in 1913, it was hailed as a means of reducing the overall tax burden on workers and shifting it to the wealthy through progressive income tax rates. In 1913, people with incomes of less than $4,000 were exempt from income taxes. Adjusted for inflation, that would be roughly $69,000 in today's dollars.

People in the highest tax bracket paid four times as much as those in the lowest, but ranging from one to four percent of income, the tax rates at all levels were very small compared with today.

QUOTATIONS

"A taxpayer is someone who works for the federal government but who doesn't have to take a civil service examination."
Ronald Reagan

"But in this world nothing is certain but death and taxes."
Benjamin Franklin

"The trick is to stop thinking of it as 'your' money".
Revenue Auditor

"The hardest thing in the world to understand is income tax!"
Albert Einstein

"When there is an income tax, the just man will pay more and the unjust less on the same amount of income."
Plato

"There are two systems of taxation in our country: one for the informed and one for the uninformed."
Honorable Learned Hand

"Your federal government needs your money so that it can perform vital services for you that you would not think up yourself in a million years."
Dave Barry

"Enlightened" Income Tax Deductions

It's that time of year... Income Tax Time.

In these times of self enlightment, Uncle Sam's required report might contain some different types of deductions.

For example, why not claim our "inner child" as a dependent? And for that matter, for those of us who are "co-dependent," we should be able to claim something for "co-dependents."

Looking at business expenses:

If you're allowed to claim professional consultation fees and if you regularly consult with your "Higher Self" for guidance why not claim this.

FILL IN POINTS FOR EACH LINE

FILING STATUS:

Inner Child age: _____ +____________

(if more than one claim extra 100 pts.) +____________

InnerVictim (deduct 500 pts.) - ____________

Co-Dependents (deduct 100 pts. each)

________________________ - ____________

________________________ - ____________

________________________ - ____________

Higher Self  (50 pts.) +____________

Source Site

Text Your
Tax Know-How

Tax Quiz 1

Tax Quiz 2

Tax Quiz 3

Tax Quiz 4

Helpful Tax
Preperation Sites:

IRS Homepage

Download the forms

Prepare & File Online

Dear IRS:

Enclosed is my 1998 Tax Return & payment. Please take note of the attached article from the USA Today newspaper. In the article, you will see that the Pentagon is paying $171.50 for hammers and NASA has paid $600.00 for a toilet seat.

Please find enclosed four toilet seats (value $2400) and six hammers (value $1029).

This brings my total payment to $3429.00. Please note the overpayment of $22.00 and apply it to the 'Presidential Election Fund', as noted on my return. Might I suggest that you send the above mentioned to fund a '1.5 inch screw'. (See attached article - HUD paid $22.00 for a 1.5 inch Phillips Head Screw.)

It has been a pleasure to pay my tax bill this year, and I look forward to paying it again next year.