#Tax July 25

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July 2026 several of us are going to take on the 30-Day America at 250 Coach4aday Challenge. Each day we share something about America’s unique and quirky history. It can be about a place, an event, or person. Today it about the history of Federal TAX in the US.

Dave Manuel has a website that I was able to grab some interesting historical information from about the history of tax in the US. Part of what I gathered was that the first tax happened in 1861 to support the Civil War. People earning over $800 a year got imposed 3%. What would be unheard of today is when the war ended the tax expired and went away.

Day 25-US Tax Milestones

If you want to track a watershed moment for each American as it relates to being taxed here is an important date. The 16th Amendment, ratified on February 3, 1913, fundamentally changed how the federal government is financed by giving Congress the constitutional authority to levy a federal income tax without apportioning it among the states based on population.

Before 1913, the federal government relied primarily on tariffs and excise taxes to generate revenue. In the years leading up to the ratification of the 16th Amendment, tariffs on imported goods were the government’s largest source of income. Some historians estimate that before the federal income tax was established, as much as 80–90% of federal revenue came from tariffs collected on imports.

If you want to see a visual history go to this Dave Manuel Link.