Definition of the word income tax

The term "income tax" was first coined in the 19th century, when many industrialized nations began exploring new revenue sources to fund growing government expenses. Prior to this, taxes typically took the form of duties on goods entering or leaving a country (known as tariffs) or taxes on specific activities, such as owning property or conducting business. The concept of a general income tax, however, was a relatively new idea at the time. In the United States, the first federal income tax was enacted in 1861 during the Civil War, though it expired in 1872. It wasn't until the constitutional amendment known as the 16th Amendment, ratified in 1913, that a federal income tax became a permanent feature of the US tax code. In the years since, the term "income tax" has come to signify a tax that applies to the income, salaries, wages, and profits earned by individuals and corporations over the course of a given year. The specific rate and structure of income tax vary widely by country, but the general principle that income should be taxed has gained widespread acceptance as a means of promoting economic stability and social welfare.