Introduction: This book explores the long history of American taxation during times of war. As political scientist David Mayhew recently observed, since it's founding in 1789, the United States has conducted hot wars for some 38 years, occupied the South militarily for a decade, waged the Cold War for several decades, and staged countless smaller actions against Indian tribes or foreign powers. The cost of these activities has been immense, with important and lasting consequences for the tax system, the economy, and the nation's political structure. By focusing on tax legislation, we hope to identify some of these consequences. But we are not interested in simply recounting statutory details. Rather, we hope to illuminate the politics of war taxation, with a special focus on the influence of arguments concerning "shaped sacrifice" in shaping wartime tax policy. Moreover, we aim to shed light on a less examined aspect of this history by offering a detailed account of wartime opposition to increased taxes.

Excerpt from War Tax: A Complete Analysis and Explanation of Normal Taxes and Special War Taxes Now Imposed by the Federal Government, Including Tables and Examples, Applied to Corporations, Partnerships, Individuals, Etc On Octobers 3, 1917, Congress enacted the most far-reaching War Tax law ever known to the American people. It became immediately effective. The details of the numerous War Taxes are of interest to every person earning over $1,000 a year, and to every corporation partnership or other concern, and every individual engaged in business. This book tells the taxpayer what the War Taxes are, when, where and how they must be paid, and helps him to solve his own tax problems arising from this legislation and to make the, returns required by the law. Severe penalties fall upon those who, through ignorance or otherwise, fail to make returns in the manner and at the time prescribed by law, and who do not pay promptly the taxes found to be due. It is important to note that the rates given here are the combined taxes of the old and the new laws. No reference need be made to the old revenue law in figuring the taxes now in effect. War Income Tax (Effective from Jan. 1, 1917) On Individuals Every person, a citizen or resident of the United States, who received more than $1000 net income in the preceding calendar year, if unmarried, and more than $2000 if married, must pay income tax. This tax applies to every citizen or resident of the United States as to his or her net income from all sources within and without the United States, and to every non-resident alien as to his or her net income from sources within the United States, including the interest on bonds, notes and other interest-bearing obligations, not specifically exempted. Income Defined Income includes gains, profits and income from salaries, wages or compensation for personal services of every character, or from professions, vocations, businesses, trade, commerce or sales, or dealings in property, real or personal, growing out of the ownership or use of or interest in real or personal property; also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, and income derived from any source whatever. Net income is that which remains after the deductions herein enumerated are made. Normal And Additional Taxes Defined The Income Tax on individuals is divided into two parts, the Normal tax and the Additional or Surtax. Both are computed on the net income for the preceding calendar year ending December 31. The Normal tax is a fixed rate on the net income above the personal exemptions stated above. The Additional or Surtax is a graduated tax on net incomes above $5000. The Rates The Normal tax on an unmarried person's net income is 2 per cent on the amount of income over $1000 and not over $3000, and 4 percent on the amount of income over $3000. The Normal tax on a married person's net income is 2 per cent on the amount of income over $2000 and not over $4000, and 4 per cent on the amount of income over $4000. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.