Everyone loves taxes, right? Not so much.
If there’s one thing that can unite Americans, it’s the belief that they pay too much in taxes. On the flip side, taxes serve a role in our society. It’s how Congress gets paid and how roads get built, not to mention pay for our outstanding military.
You may know how taxes work because you pay them every year. There are some really interesting things you should know about the US tax system.
Want to know more? Read on for 5 unforgettable facts about our tax system that will impress any accountant.
1. Did Benjamin Franklin Really Talk About Death and Taxes?
One of the most common quotes about taxes is attributed to Benjamin Franklin. He wrote the famous quote in 1789. Was he the first person to tie the two certainties of death and taxes?
No, he’s not. In 1716, Christopher Bullock wrote, “Tis impossible to be sure of anything but death and taxes.”
Edward Ward wrote something to that effect in 1724.
2. W-2 Forms Have Been Around Since the 1940s
Millions of employees get their W-2 forms from their employers in January. The W-2 form was a requirement beginning in 1943 as a result of the Current Tax Payment Act of 1943.
https://www.americanbar.org/groups/public_education/publications/teaching-legal-docs/getting-to-know-the-irs-w-2-form/
This allowed taxpayers to pay taxes throughout the year, as opposed to one lump payment. The first W-2 forms were sent to employees in 1944 for that tax year.
Since W-2 forms are a requirement by law, how can you create them for yourself? You may need one if you didn’t get one from your employer in time to pay taxes. You can go to thepaystubs.com to create one for yourself or your employees.
3. Americans Don’t Know About Tax Brackets
Here’s a stunning fact about the U.S. tax system: more than 90% of Americans could not identify income tax brackets. There are 7 of them.
If you’re part of the 90%, you’ll want to check the IRS website for the latest tax bracket information.
This is important to know because you need to know how much you can expect to pay in income taxes during the year. Pay too much, you get a refund. Pay too little, and you owe.
4. Americans Have Deep Anti-Tax Roots
Having a deep disdain for taxes isn’t new. Some may see it as downright American. In 1765, the Stamp Act Congress met in New York.
At this meeting of delegates over the course of 18 days, taxes were hotly contested. The British government imposed a tax on colonies. This led the delegates to argue that the taxes were unjust because the colonists had no real representation in the British government.
Fun US Tax System Facts
The next time you’re at a party, you have a bunch of fun facts about the US tax system to drop to impress just about anyone. You’ll find that when you talk about taxes, you can get just about anyone to agree that they pay too much.
Do you want more fun facts? Check out this site again to discover the more impressive facts.
