Tuesday, April 26, 2011

Taxing times

Why does this not come as a surprise? Apparently income tax was first introduced in Canada in 1917 to finance the First World War - and it was levied at different rates - based on a man's marital status with single men taxed more - 4% of all income. It became the welfare state's greatest revenue source - which no doubt explains why some country's have a personal tax rate of well in excess of 40% for high income earners. Of course tax has been around for much longer - in 10 CE in China, professionals and business were taxed 10% of profits; the UK introduced it in 1798 to fund the Napelonic wars, and the US adopted an income tax in 1861 to help out with costs of the American Civil War!

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