Do you ever get sick and tired of paying taxes? I know, this is only August, and most people aren’t thinking about tax season, but this is the month when it all began and you might be surprised at which president instituted the Federal Income Tax.
President Abraham Lincoln.
On August 5, 1861, Lincoln signed the Revenue Act which started people paying a federal tax. The Civil War had caused the government to be strapped for cash. In order to rebuild the financial stability of our nation, this law was enacted. Congress would repeal the law in 1871 but the 16th amendment in 1909 would be passed that made the federal income tax a permanent fixture of law. This amendment would be ratified in 1913.
Lincoln’s tax was only 3% and was applied to everyone making $800 or more. “The Revenue Act’s language was broadly written to define income as gain “derived from any kind of property, or from any professional trade, employment, or vocation carried on in the United States or elsewhere or from any source whatever.”1
Now, we have to put that into perspective. $800 in 1861 was the equivalent of $29,224.09 today.2 Was Lincoln taxing poor people? Our confusion comes from the fact that in 2024, the median income was $80,020.00.3 However, in 1861, the median income was around 8 cents per hour, which equated to about $4.80 per week or $250 per year.4 Lincoln taxed those whose income was 3.2 times greater than the average person. If we kept Lincoln’s original plan, those taxed today would be those making over $256,000 per year!!
Ohioans seem to have everything taxed. We have sales tax, local tax, state tax, federal tax, property tax, and a few more. Take a look at the deductions on your pay stub and you will be surprised.
Taxes have always been a part of the world, and we cannot blame President Lincoln for
utilizing a method that was in Bible days. Nor can we blame our current government. We live here. We enjoy the freedoms. We appreciate the benefits and advantages. Somebody has to pay for it. Why shouldn’t it be the citizens?
One of the first taxes mentioned in Scripture was the census tax (Temple tax). Exodus 30:13-15 says, “This they shall give, every one that passeth among them that are numbered, half a shekel after the shekel of the sanctuary: (a shekel is twenty gerahs:) an half shekel shall be the offering of the LORD. (14) Every one that passeth among them that are numbered, from twenty years old and above, shall give an offering unto the LORD. (15) The rich shall not give more, and the poor shall not give less than half a shekel, when they give an offering unto the LORD, to make an atonement for your souls.” This wasn’t a tithe. Every person gave the same amount.
In the New Testament, we clearly see a governmental tax. Luke 2:1-3 gives these familiar words. “And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed. (2) (And this taxing was first made when Cyrenius was governor of Syria.) (3) And all went to be taxed, every one into his own city.”
Do we get a bit grumpy and out of sorts about paying taxes? Do we question why we should pay taxes when the government mismanages money and uses the funds to support things the Christian would oppose?
I think we would agree that the Roman government was corrupt. Even so, read this interchange Jesus had with some people who were trying to trap Him with His own words. Let this encourage us to have the right attitude when it comes to taxes.
Matthew 22:17-21 says, “Tell us therefore, What thinkest thou? Is it lawful to give tribute unto Caesar, or not? (18) But Jesus perceived their wickedness, and said, Why tempt ye me, ye hypocrites? (19) Shew me the tribute money. And they brought unto him a penny. (20) And he saith unto them, Whose is this image and superscription? (21) They say unto him, Caesar’s. Then saith he unto them, Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.”
1https://www.history.com/this-day-in-history/august-5/lincoln-imposes-first-federal-income-tax
2https://www.in2013dollars.com/us/inflation/1861?amount=800
3https://dqydj.com/household-income-percentiles/
4https://www.nber.org/system/files/chapters/c2500/c2500.pdf
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