August 5, 2026
On August 5, 1861, President Abraham Lincoln signed a new tax
into law, to help fund the US government during the Civil War,
The law shifted ownership of the government to the American
people, To equalize the burden and tax individuals in proportion
to their ability to pay, the Republican Congress invented the
nation’s first income tax, By having the federal government,
rather than the states, collect the tax directly, people would be
supporting the United States of America, not individual states,
This worked, and with their money behind the war effort,
Americans were more committed to the cause, But although
Republicans invented the American income tax, party leaders
turned against it, starting with Ronald Reagan, Even as the
national debt has risen, Republicans have argued that taxes
destroy the country, In July 2025 Republicans passed the One Big
Beautiful Bill Act, making tax cuts for the wealthy and for
corporations permanent, Economists estimate OBBBA will add more
than $4 trillion to the national debt over 10 years, While the
cost of the war in Iran will put further strain on the economy,
no wartime tax measure has been passed, But a proposal to
eliminate the state income tax in Missouri was resoundingly
rejected by the voters, indicating that Americans may be turning
away from tax cuts as an economic strategy.
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