Tax laws affect all citizens of the United States. Various facets of the economy rely on correct application of tax laws. Tax professionals play a critical role in assisting individuals as well as businesses comply with these complicated laws. To correctly compute an individuals taxes, a brief historical review of how the United States got here is necessary. How did these laws come to be in the United States? In this unit, you will briefly review its history.

The first federal income tax was passed in 1861. When was the next one passed and why was it necessary? Why was pay-as-you-go withholding needed in 1943?