Tax History
Historical context and development of taxation systems.
Pre-Constitutional Economic History
Anne-Robert-Jacques Turgot (1727 – 1781) Tax collector, physiocratic, economist, and statesman, was a key figure in the development of economic thought in the 18th century. He is best known for his work on the nature of wealth and the role of government in the economy. Turgot's ideas on taxation were particularly influential, as he argued for a system of taxation that would be fair and equitable, while also promoting economic growth. He believed that taxes should be based on the ability to pay, and that they should be used to fund public goods and services that benefit society as a whole. Turgot's work laid the groundwork for modern economic theory, and inspired other influential economic writers including Adam Smith, Thomas Paine, etc. Famous for his work on the nature of wealth and the role of government in the economy, Turgot's ideas on taxation were particularly influential. Reflections on the Formation and the Distribution of Riches. After the the Seven Years' War (1756–1763), Turgot had:
emphasized what he believed were American inadequacies. He complained that the new American state constitutions failed to adopt the physiocratic principle of distinguishing for purposes of taxation between those who owned land and those who did not, the principle of direct taxation of property holders had not been followed, and a complicated legal and administrative structure had been created to regulate commerce. Wikipedia: Turgot
Adam Smith (1723 - 1790) economist and philosopher who wrote The Wealth of Nations, first published in 1776 represented a clear paradigm shift in the field of economics, moving away from the mercantilist and physiocratic economic theories that were becoming less relevant in the industrial age.Wikipedia
... became a foundational study in the history of economics and the first formulation of a comprehensive system of political economy. Britannica: The Wealth of Nations
The Wealth of Nations presented a systematic canons of taxation which postulated four "maxims" of taxation: proportionality, transparency, convenience, and efficiency. Adam Smith's work on taxation was particularly influential. A few direct tax quotes:
A direct tax upon the wages of labour, therefore, though the labourer might perhaps pay it out of his hand, could not be said to be even advanced by him;
Capitation Taxes
Capitation taxes, so far as they are levied upon the lower ranks of the people, are direct taxes upon the wages of labour, and are attended with all the inconveniences of such taxes.
The impossibility of taxing the people, in proportion to their revenue, by any capitation, seems to have given occasion to The invention of taxes upon consumable commodities. The state, not knowing how to tax, directly and proportionally, the revenue of its subjects, endeavours to tax it indirectly by taxing their expense, which is supposed, will in most cased be nearly in proportion to their revenue. Their expense is taxed by taxing the consumable commodities upon which is laid out.
Constitutional Tax History
- The Federalist Papers : No. 36: Alexander Hamilton
- The Debates in the Several State Conventions, 1827
- History of the IRS
- The records of the Federal Convention of 1787: Internet Archive
- Records of the Federal Convention of 1787, 3 Vol.: Online Library of Liberty
- The records of the Federal convention of 1787, LOC: Library of Congress
16th Amendment
Also Note: Reprint of 1909 Congressional Record: Remarks of Senator Owen
THE INCOME TAX: A study of the history, theory, and practice of income taxation at home and abroad. Section 2: The meaning of the amendment. The Income Tax: EDWIN R. A. SELIGMAN
THE CONCEPT OF INCOME-ECONOMIC AND LEGAL ASPECTS, ROBERT MURRAY HAIG, Ph.D., forward by EDWIN R. A. SELIGMAN, Ph.D. The Federal Income Tax