Business Report 4/15/15: History of income tax - Hawaii News Now - KGMB and KHNL

Business Report 4/15/15: History of income tax

In the early days of the Republic, we didn't have an income tax. Instead, we taxed tobacco and liquor. During one low-cost period of peace, America had only import taxes. For awhile you could drink and smoke all you wanted without paying taxes.

But it came back in 1862 to pay for the Civil War, and lasted 10 years. It came back again in 1894. Two years after that, the Supreme Court ruled that the income tax was unconstitutional.

That lasted for 21 years, until 1913, when the 16th amendment brought back the income tax for good, but there is some good news on taxes, you quit smoking and you don't drink as much as you used to.

That's Illustrated Economics.

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