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"I have been told there was no direct tax in US till 1913, so how did it work then? " This is not entirely true. There was an income tax that was put into place for a number of years around the civil war, but was later abolished. Im not certain on the exact years, though. Either way, taxes still abounded back then, they just werent compulsory. But they were if you were alive, eating, and tried to move around society. In other words, if you lived in BFE and had a farm, you probably didnt pay anything -- but if you lived in the city, you almost had to when buying tea, other food items, paying for stamps, other imported items. The debate about whether we should have income tax or not is somewhat moot outside of armed rebellion. Its here to stay. The point that is more important is that it should be uniform, easy to follow, and LOW. I should not pay 50% of my efforts to the government. 5%, ok, 10% maybe, but 50%? no. The amount is what makes the income tax so unbearable, not that it exists at all. Brian |