Thursday, April 15, 2010

Happy Tax Day

Is this really a holiday? Seriously, should we consider a day that we write checks to the government a day of celebration? I guess I should be patriotic and be happy that my taxes supply funds for the powers-that-be to run our country. I guess...well, maybe...no, sorry, I just can't!

Have you filed your tax return? I shouldn't be complaining because I did mine months ago. I have extra taken out of my paycheck each month so I actually get money back from the government. Dave Ramsey says not to do this because it's essentially giving the government a loan that they don't have to pay you interest on but this is one of the few things that I disagree with him on. I love getting that refund check back every year. That little lump sum helps me play catch up.

But why April 15? What's the significance of that day? To be honest, I couldn't find any specifics on the day but I did dig up some interesting info on taxes in general. The first federal income tax was instituted by Washington in 1861 to help fund the Civil War. Everyone had to pay a certain percentage of their yearly income to the government on June 30 each year.

A few years later in 1895, the government reassessed this and made it more specific. Everyone making more than $4000 per year had to pay 2% of their income. They also changed the pay date to March 1 supposedly because rich people tended to go on vacation for the entire summer so they weren't always at home to pay their taxes in June. Priorities people, priorities!

The 16th Amendment to the US Constitution was enacted in 1913, giving Congress the power to enact a federal income tax on everyone. There were no specifics as to a set wage or tax percentage, just anyone who had an income was subject to taxation.

In 1955, tax day was moved to April 15 where it has stayed ever since. So, since today is April 15, don't let midnight slip up on you!

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