We all pay taxes no matter how they are generated.

Fact is, most Americans pay little in income taxes. and before the 16th Amendment the hidden taxes were mostly in the price of goods by way of tariffs.
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Here’s a chart showing how U.S. federal revenue sources changed from 1790 to 1930:

  • Tariffs dominated until the early 20th century.
  • Excise taxes were a consistent secondary source.
  • Land sales contributed modestly during westward expansion.
  • Income tax became significant after the 16th Amendment (1913).
  • Other sources grew in importance by the 1930s. Postal Service Revenues
    Fees for postage and other services helped fund government operations. Fees and Licenses Taxes on ships, patents, and legal documents.

One comment

  1. “… Fact is, most Americans pay little in income taxes. … Income tax became significant after the 16th Amendment (1913). …”

    I went back and looked. Over my 54+ years of employment, through last year, I paid more in federal, state, and local income taxes than I earned in wages during my first twenty-five years of full time employment – from age nineteen through age forty-three.

    So, yes, many, perhaps most Americans pay little in income taxes – and that is ever so more true since President George W. Bush took office in 2001 – where he started a trend that removed more and more Americans from shouldering the income tax burden. Today, about 40% of households with income pay no income taxes.

    Long past time for a change – long past time for free riders to contribute given that they benefit as much as I do – actually more, much more – from federal services, entitlements, etc.

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