The history of taxation and money started long ago. Governing groups of people demanded others pay them to run some semblance of a government. Anything with value has been taxed. That includes the British taxing salt from India or tea delivered to America. The monies collected as taxes were, and still are, used to create a government-run infrastructure.
Money is anything that is considered valuable and is used to purchase other products. It evolved into coins and paper that were vouchers, or guarantees, drawn on the valued items. Commodity money is the term used to describe this type of voucher. An example is that funds in the United States is considered a voucher for gold. The gold itself is not in circulation, but the it can be used to purchase products.
Anything individuals owned that had value could be taxed for a percentage of their total worth. Gold, bronze or silver coins were made that could be used to pay the amount levied against the owner. Often, in-kind payments were made using crops or farm animals instead of coins.
Infrastructures of countries, including railways, roads and schools, is paid for by using funds collected through taxes. The military forces are paid from the same funding source. There are many programs that aid low-income families which also draw money from this pool.
In the early years of the United States, it was not legal to levy income taxes against a person's income. The government only taxed products that were considered luxury items, like alcohol or tobacco. It was not until many years later that laws were created to allow income tax.
Today, funds obtained through taxation are used to build the infrastructures of countries. This includes transportation systems, electrical grids, schools and other necessities. The funds are also used to pay for military troops, which provide protection for residents. Public programs that aid the poor and many other types of programs also use monies collected from citizens.
All cultures are based on using some sort of monetary unit. Many books have been written about the history of taxation and money because it is a long, complicated story. This article is too short to do it justice and it is just a sampling of some of the highlights.
Money is anything that is considered valuable and is used to purchase other products. It evolved into coins and paper that were vouchers, or guarantees, drawn on the valued items. Commodity money is the term used to describe this type of voucher. An example is that funds in the United States is considered a voucher for gold. The gold itself is not in circulation, but the it can be used to purchase products.
Anything individuals owned that had value could be taxed for a percentage of their total worth. Gold, bronze or silver coins were made that could be used to pay the amount levied against the owner. Often, in-kind payments were made using crops or farm animals instead of coins.
Infrastructures of countries, including railways, roads and schools, is paid for by using funds collected through taxes. The military forces are paid from the same funding source. There are many programs that aid low-income families which also draw money from this pool.
In the early years of the United States, it was not legal to levy income taxes against a person's income. The government only taxed products that were considered luxury items, like alcohol or tobacco. It was not until many years later that laws were created to allow income tax.
Today, funds obtained through taxation are used to build the infrastructures of countries. This includes transportation systems, electrical grids, schools and other necessities. The funds are also used to pay for military troops, which provide protection for residents. Public programs that aid the poor and many other types of programs also use monies collected from citizens.
All cultures are based on using some sort of monetary unit. Many books have been written about the history of taxation and money because it is a long, complicated story. This article is too short to do it justice and it is just a sampling of some of the highlights.
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