FinanceLegal

History of Withholding Taxes

The tax blockade occurred for the first time in the United States in 1862 at the command of President Abraham Lincoln to help finance the Civil War. The federal government has also used a huge amount of tax for the same purpose. After the Civil War, in 1872, the abolition of income and income taxes was abolished.6

The present system was introduced in 1943 and is subject to substantial taxation.6 At that time it was thought that it would be difficult to collect taxes without obtaining them from a source. Most employees are reduced to withholding taxes when hired and completing the W-4 form. The form estimates the amount of tax to be paid.

Withholding tax is one of two types of income tax. The other type is paid by the government by the employer and based on the salary of each employee. It is used to pay for Social Security and traditional unemployment plans (introduced by the Social Security Act of 1935) and Medicare (introduced in 1966).

Read more:
How to become Filer
How to pay income tax
What is withholding tax 

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