A tax on buyers will shift the?

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financial, analysis, accounting @ Pixabay

Taxing buyers is not a new idea. In fact, it has been around for centuries and was first introduced in the United States on July 1, 1862, as part of the Revenue Act of 1862. The tax was formally called “The Internal Revenue Tax” and applied to all incomes over $600 at 3%. This created an easy way for the federal government to collect revenue without having to rely so heavily on tariffs and duties.

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Many people argue that taxing buyers will shift more economic power into the hands of those who are currently unable to afford homes or goods due to their income limits; however, there are many others who don’t feel this is fair since taxes often also apply to necessities such as food and clothing. Whether you support or oppose the idea of taxing buyers, it’s important to remember that there are many other factors at play when discussing the fairness of this system.

The Internal Revenue Tax was repealed in 1872 and replaced with a less-generous income tax law. It wasn’t until 1913 that Congress created an “Income Tax” which would eventually be renamed as simply, “the Income Tax”.

The newly reorganized structure made incomes over $300 taxable at rates between one per cent and seven per cent. And while some feel like taxing consumers is unfair for those who cannot afford goods or homes due to their income limits; others argue that taxes often also apply to necessities such as food and clothing. 

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