Governments apply income taxes as a sort of tax on the income produced by people and businesses under their control.
Government duties, public services, and citizen goods are all paid for through income tax revenue. Income tax payment is required by the federal government, numerous states, and municipal governments.
An individual's wages, salaries, and other sources of income are subject to the personal income tax. Corporations, partnerships, small enterprises, and independent contractors are all subject to business income taxes.
In order to support the Civil War's funding, the United States enacted the first income tax in 1862. The tax was eliminated following the war, but after the Revenue Act of 1913 was passed, it was reintroduced.
Therefore, Governments apply income taxes as a sort of tax on the income produced by people and businesses under their control.
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