MGMT 127A Chapter Notes - Chapter 1: Ad Valorem Tax, Sales Tax, Intangible Property
Document Summary
Chapter 1: intro and the basic tax model. Notes are only relevant to this specific class** When the civil war ended, the need for additional revenue disappeared and the income tax was repealed. The federal government was able to finance its operations almost exclusively from customs duties (tariffs) The ratification of the sixteenth amendment to the u. s. constitution in 1913 sanctioned both the federal individual and corporate income taxes. In 1939, less than 6 percent of the u. s. population was subject to the federal income tax. 1945, more than 74 percent of the population was subject to the federal income tax. In 1943, congress passed the current tax payment act, which provided for the first pay-as-you- go tax system. A pay-as-you-go income tax system requires employers to withhold for taxes a specified portion of an employee"s wages. Persons with income from other than wages may have to make quarterly payments to the irs for estimated taxes due for the year.
