How Did The Income Tax Start?


5 Answers

Monica Stott Profile
Monica Stott answered
Income tax covers almost everything that a person earns. This includes wages and salaries, interest on bonds, savings bank accounts, dividends on stocks and rents. It also includes the monthly payments for doctors, lawyers, authors, inventors among other professionals. The question that many people ask is how did income tax start?

During the era of emperor Wang Mang of China, a new form of tax was instituted and it was different from the true form of income tax in terms of land and slaves, which traces its history to china. During the 18th century, William Pitt enforced the first ever income tax system in the world. William devised the system in order to cater for the expenses that were to be used on weapons, during the wars against Napoleon Bonaparte in imperial rule over France.

The tax system was implemented in a unique way such that on an income amount of over 60 pounds, the tax rate was 0.8333. On the other hand, on an income amount of over 200 pounds, the tax rate was relatively higher and it was increased up to the rate of 2.5%.  The total amount of income tax was implemented in a way that it would raise up to ten million pounds although it only managed to raise 6 million pounds.

In Britain, the rates of tax are usually fixed by an annual finance act and the professionals who manage the income tax system are referred to as commissioners of Inland revenue. When income tax was introduced, it was only undertaken as a temporary measure but today, income tax is considered as a personal tax on all the amount of income that an individual earns, from an investment or employment annually. The amount is usually assessed based on an annual return income, based on the rate of tax, which is graded according the amount of income and with the difference between the amount of earned and unearned income.
Amman Aamir Profile
Amman Aamir answered
Income includes just about everything a person earns wages and salaries, interest on bonds and savings bank accounts, dividends on stock, and rents. It also includes the payments that are received by doctors, lawyers, authors, inventors, and other professional tax in this country was first levied by William Pitt the Younger, in 1799 to pay for the French Wars. Today, income tax is a personal tax on ail annual income from investments or employment. The amount due is assessed on an annual return of income, with the rate of tax graded in accordance with the size of income and with a differential between earned and unearned income. A proportion of income is left free of tax, according to a scale of allowances for personal or family expenses.

In Britain, rates of tax are fixed by an Annual Finance Act and the people who manage the income-tax system are called Commissioners of Inland Revenue. Inspectors of Taxes control local tax districts. General or Special Commissioners hear appeals against tax assessments or refusals of allowances.

Income tax, when first introduced, was intended to be only a temporary measure!
Anonymous Profile
Anonymous answered
The true form of income tax other then property tax or head tax or ownership of some sort of production like crops, land and slaves etc started its traces from China. In the era of Emperor Wang Mang of China a new form of tax which was never experienced was instituted. This was some what similar to the current form of Income tax system available in modern days. Wang Mang implemented on professional labor an unprecedented tax at the rate of 10% of the profit. This is the first time in the history when tax on the income or profit was implemented.

William Pitt the Younger in 18th century implemented the first income tax system in the history of the world. He devised the income tax system to pay for the weapons devised to be used in the wars against Napoleon Bonaparte, the imperial rule over France. The tax was implemented in such a way that on income over 60 pound, tax at the rate of 0.8333% was implemented and on income over 200 pounds, tax rate was increased upto 2.5%. The whole income tax was supposed to collect over 10 million pounds but it was able to raise only 6 million pounds.
karin bernal Profile
karin bernal answered
The answer depends on the country you live in. If you live in the U.S. You can go to to learn about taxation from inception to present day.

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