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Delaware Taxation: Difference between revisions
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== Tax Laws == | == Tax Laws == | ||
Delaware levied a tax on several classes of income in 1869, then abolished it in 1871. | Delaware levied a tax on several classes of income in 1869, then abolished it in 1871. | ||
Abraham Lincoln instituted the income tax in 1862, and on July 1, 1862, Congress passed the Internal Revenue Act, creating the Bureau of Internal Revenue (later renamed to the Internal Revenue Service). This act was intended to “provide Internal Revenue to support the Government and to pay interest on the Public Debt.” Instituted in the height of the Civil War, the “Public Debt” at the time primarily consisted of war expenses. For the Southern States that were part of the Confederate side of the Civil War, once Union troops took over parts of the Southern States, income tax were instituted on them. <ref>[https://search.ancestry.com/search/db.aspx?dbid=1264 Creation of the IRA]</ref> | |||
*To learn more about this Collection click [https://www.familysearch.org/wiki/en/United_States,_Internal_Revenue_Assessment_Lists_(FamilySearch_Historical_Records) here] | |||
*To learn more about the Civil War taxes click [https://www.archives.gov/publications/prologue/1986/winter/civil-war-tax-records.html here] | |||
What history has shown us is that while property taxes are locally levied, there is significant state involvement with the amount of tax local political subdivisions can levy, how property assessments are conducted, and what services local taxing subdivisions must provide for their residents. This comes at a cost to state taxpayers, because the state has obligations it must fund as well, with a limited amount of state tax dollars. | |||
Nearly all states collect an annual tax on personal income, based on one's salary and other forms of "taxable income." The vast majority of states have what is known as a progressive tax code, which is essentially a sliding scale based on income, which requires those over a certain threshold to pay the highest rate. Some states have a flat tax that applies to all taxpayers regardless of income. Income taxes are used for a number of state goods and services available to residents, such as public education, police protection, and assistance for low-income individuals. Not all states collect income tax, but typically make up for it in other ways. | Nearly all states collect an annual tax on personal income, based on one's salary and other forms of "taxable income." The vast majority of states have what is known as a progressive tax code, which is essentially a sliding scale based on income, which requires those over a certain threshold to pay the highest rate. Some states have a flat tax that applies to all taxpayers regardless of income. Income taxes are used for a number of state goods and services available to residents, such as public education, police protection, and assistance for low-income individuals. Not all states collect income tax, but typically make up for it in other ways. | ||