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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