Untitled_document - Types of Taxes Summary of Taxes During the Civil War the federal government required much more revenue than excise taxes could

Untitled_document - Types of Taxes Summary of Taxes During...

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Types of Taxes Summary of Taxes During the Civil War, the federal government required much more revenue than excise taxes could provide. A tax on income was established in 1862 but was later abolished after the war. The addition of the Sixteenth Amendment in 1913 gave Congress the right to collect income taxes. Income taxes tend to be progressive because they tax a larger percentage of income from high-income groups than from low-income groups. Each state can choose to have sales tax. These taxes tend to be regressive, because people with lower incomes had to pay a higher percentage of their income than did people with higher incomes. There are also proportional taxes where all people pay the same percent. This is known as a flat tax. Most Common Taxes: Income – tax on a person’s earnings – Progressive Sales – tax on the dollar value of a good or service being sold – Regressive

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