Thursday, January 27, 2011

History of Income Tax

Taxes have been collected since ancient times. The earliest – recorded in Mesopotamia and Egypt were taxes on imported goods – the equivalent of Customs duties – and on houses and land.

However, income tax is a relatively recent invention. It was first introduced in Britain in 1799 by Prime Minister William Pitt; with a top rate of just 10 per cent, to help pay for the Napoleonic Wars.

Progressive income tax – increasing in proportion as earnings rise – was developed in Prussia in 1853 and has been used in Britain since 1907, in the USA since 1914 and in France since 1917.   

Hendrik

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