American History Question

[kgostanek]

I'm sure someone knows this.

Is it true that the first federal income tax wasn't legislated until the Civil War? Did the federal government impose any sort of tax? What about the individual states?

I'm trying to understand how American government was funded in its early years.

[anarchyintheuk]

This provides a short, accurate summary.

http://www.tax.org/Museum/1861-1865.htm

[jackfox]

I believe that this is true. There were other times in the early 19th century where income taxes were proposed, but it never made it through Congress until 1861 (somebody correct me if I'm wrong).

Until then, I believe that Federal funding was gained through foreign loans and tariffs on imported goods.

There were other, less popular methods of raising revenue such as taxes on domestically produced goods. Particulary notable was Alexander Hamilton's efforts to place a tax on producers of Whiskey. The result was a full-blown "Whiskey Rebellion" in western Pennsylvania. Only the presence of George Washington himself at the head of 10,000 militia prevented further violence from escalating.