Monday, January 22, 2007

It's that season again...

That's right, tax season.

And despite the crazy man in NH who has barricaded himself in his house and refuses to pay over $100,000 in back taxes to the Federal government, you do still have to pay taxes. For all his followers, check Amendment XVI of the Constitution of the United States of America.


I was able to catch a glimpse at a tax return from 1938 this weekend. (Yeah, that's gonna be some penalty.) You may be familiar with the individual income tax return of today with multiple pages, having to attach various schedules, and forms, ect.

The individual income tax return of 1938 was so simple. It was all on one page, income, deductions, and computation of tax. There were roughly 15 lines. H&R Block would have had no business.

Also, interestingly enough, there was an earned income tax credit in 1938, which today reduces (or eliminates) the taxes that low-income working people pay. Back in 1938 the earned income tax credit was viewed variously as a pro-work alternative to welfare and as an offset to the Social Security payroll tax.

Also in 1938, the federal minimum wage was enacted but was not indexed for inflation and thus declined in real value until Congress increased it.

1 comment:

  1. It was so much easier when I was younger and thought all taxes were evil.

    ReplyDelete