Tax History Trivia

With the IRS moving tax day back for all U.S. filers for the second time in as many years, it’s time once again for a fun diversion by looking back at tax history! 

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* 1. In 1861, President Abraham Lincoln enacted a flat tax on wages above $800 to help pay for the Civil War. What was the tax rate?

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* 2. In what year did taxes start being withheld from paychecks?

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* 3. The estate tax, which may apply to your assets after you pass away, was originally enacted in 1797 to fund which branch of the U.S. Military?

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* 4. In 1921, which state was the first to enact a sales tax? 

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* 5. The United States has a progressive income tax system, with your first dollar of earnings being tax-free and your last dollar earned being taxed as high as 37%. What was the highest tax rate when this progressive income tax system was first introduced in 1913?

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* 6. Tax day this year is May 17, pushed back one month from the traditional April 15 deadline. But the deadline wasn't always April 15. Tax day moved to April 15 in 1954. What day were taxes due prior to 1954?

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* 7. How many pages of instructions were needed for the first Form 1040 in 1913?

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