25 Captivating Insights Into Taxes

What’s the reason behind Tax Day being April 15? Who introduced the concept of taxes? And which ruler famously imposed a tax on beards? Dive into these questions and uncover more fascinating details.

1. The history of taxes stretches back to ancient Egypt.

Historical evidence of taxation can be traced to ancient Egypt, around 3000 to 2800 BCE. One notable event was the Following of Horus, a biennial occasion where the pharaoh, as both ruler and the living embodiment of Horus, collected taxes. The Bible also mentions taxation, with Joseph instructing Egyptians to offer a fifth of their harvest to Pharaoh.

2. The initial tax system in the United States sparked a major uprising.

If you’ve seen the Broadway hit Hamilton, you might recall the line, “Imagine what gon’ happen when you try to tax our whiskey.” This refers to the Whiskey Rebellion, triggered by a tax on whiskey introduced by Alexander Hamilton.

Unsurprisingly, the tax caused widespread outrage, particularly among small-scale whiskey producers. Due to the tax structure, they were charged nine cents per gallon, while larger producers paid as little as six cents. This led to violent clashes, with tax officials being attacked, tarred, and feathered. Riots resulted in fatalities, and the rebellion was finally subdued in 1794. The whiskey tax stayed in place until 1802, when Thomas Jefferson abolished it.

3. The federal income tax was introduced by Abraham Lincoln.

In 1861, Abraham Lincoln enacted the Revenue Act, marking the inception of the federal income tax. To finance the Civil War, Lincoln and Congress introduced a 3 percent tax on incomes exceeding $800, equivalent to about $23,000 today. Although this law was quickly replaced and repealed a decade later, the concept resurfaced in 1913 with the 16th Amendment, establishing the federal income tax system we recognize today.

4. April 15 wasn’t always Tax Day.

When the modern federal income tax system began, the deadline was initially set for March 1.

While no specific reason was given for this date, it likely allowed taxpayers a couple of months to organize their documents after the year ended. In 1919, the deadline was extended to March 15 to ease the burden on filers. This date remained until 1955, when Congress recognized the increasing complexity of tax preparation and adjusted the deadline to April 15.

To accommodate these adjustments and provide sufficient time for filing, the deadline was extended by another month—though the change wasn’t purely for taxpayers’ benefit. The IRS noted that the additional month would also assist their staff by distributing the workload over an extra 30 days.

5. Tax preparation consumes a significant amount of time.

The considerable time spent on annual tax filings suggests the repeated deadline changes were warranted. A 2022 Taxpayer Advocate Service report revealed that the average taxpayer dedicates around 13 hours and spends $240 to complete their tax return [PDF]. For small business owners, this effort escalates to approximately 82 hours and $2900.

6. The typical American receives roughly $3000 in tax refunds annually.

This amount fluctuates slightly each year, influenced by economic conditions, changes in consumer incomes, and the IRS’s withholding tables, which guide employers on how much to deduct from paychecks for income tax. It’s important to note that a large refund isn’t necessarily ideal, as it essentially means you’ve provided the government with an interest-free loan for the year.

According to TIME magazine, the average tax refund over the past five years broke down as follows (with 2021 being slightly higher due to pandemic-related tax relief):

7. In 1836, the U.S. federal government accumulated a tax surplus of approximately $30 million.

Congress redistributed most of these funds to the states, allowing each to decide how to use them. Maine chose to return the money to its residents, giving each person $2. Salome Sellers, a recipient, used her share to purchase an elegant pair of candlesticks. As she recounted to the New York Star Tribune in 1902, nearing her 101st birthday, “Many spent their share on fleeting luxuries ... but I bought something to cherish as a memory of those prosperous times.” Today, those candlesticks are displayed in a museum.

8. Peter the Great imposed a tax on beards.

In 1698, Russia's Peter the Great implemented a tax on beards. Following his “Grand Embassy” across Europe, where he studied Western cultures and practices, Peter returned with numerous reforms aimed at modernizing Russia—one of which targeted facial hair.

Observing that “modern” Western Europeans avoided beards, Peter sought to adopt this trend in his own country. His introduction of this policy was equally unconventional: At a state event, he famously pulled out a large barber’s razor and began shaving the beards of his guests.

Initially opposed to beards altogether, Peter later decided to monetize his stance by permitting facial hair but imposing a tax on it. Nobles and merchants were taxed at much higher rates than ordinary citizens.

9. A former IRS commissioner was imprisoned for tax evasion.

In 1952, Joseph Nunan, IRS commissioner from 1944 to 1947, was convicted of evading more than $90,000 in taxes. Among the unreported transactions was $1800 from a bet that Harry Truman would defeat Thomas Dewey in the 1948 presidential election. Nunan received a five-year prison sentence.

10. A notorious gangster was finally brought to justice because of taxes.

Infamous mobster Al Capone orchestrated a vast criminal network and ordered numerous assassinations, yet it wasn’t murder that landed him in prison. Instead, he was convicted of tax evasion and fraud, receiving an 11-year sentence.

11. Willie Nelson released an album to pay off his tax debt.

Titled the IRS Tapes, all earnings from the album were used to settle his tax obligations.

12. Henry David Thoreau was jailed for refusing to pay taxes.

In 1846, the poet was imprisoned for not paying a poll tax, a fee imposed on every individual regardless of income. Poll taxes were common in New England and often served as a barrier to voting, effectively discriminating against lower-income citizens. Thoreau’s refusal to pay was a protest against slavery. However, someone paid the tax for him, and he was freed the following day.

13. Shelled nuts can sometimes be taxed.

In England, shelled nuts are taxed at a 20 percent value-added rate.

14. India imposes an entertainment tax.

Movie tickets are taxed between 18 and 28 percent, depending on their price. This is a step forward from the previous system, where each state set its own entertainment tax. In Jharkhand, the tax once reached 110 percent.

15. A tax on cow flatulence exists.

Cow emissions, primarily burps rather than farts, are a serious environmental concern. The methane they release significantly contributes to climate change. To address this, several EU countries are considering implementing a cow tax to charge producers for these emissions.

16. England once imposed a unique hat tax.

Between 1784 and 1811, British citizens were required to pay a tax on their hats, with a stamp inside the hat serving as proof of payment. If caught without the stamp, individuals faced substantial fines. In 1798, John Collins was discovered forging these stamps to help people avoid the tax, leading to his death sentence.

17. A tax court exists.

Some taxpayers get inventive with their deductions. While most claims are rejected, the United States Tax Court, which handles tax disputes, occasionally approves unusual cases. For instance, TurboTax recounts how a professional bodybuilder successfully argued that body oil was a necessary expense for his career. (His attempts to claim buffalo meat and vitamins, however, were denied.)

18. New Mexico offers a tax exemption to centenarians.

Residents of New Mexico who reach 100 years old and have lived there for a century are exempt from state taxes. The state provides this significant tax benefit to centenarians, though with only around 90,000 people aged 100 or older in the U.S., the financial impact on New Mexico is minimal.

19. Even astronauts in space must file taxes on time or request an extension.

The IRS is strict about deadlines, as Apollo 13 command module pilot Jack Swigert discovered. Mid-mission, he realized he’d miss the April 15 tax deadline and radioed Houston for an extension. Though initially met with laughter, Swigert was serious. According to NASA transcripts, he stated, "Hey, listen, it ain’t too funny; things kind of happened real fast down there, and I do need an extension. I didn’t get mine filed, and this is serious."

This situation occurs more often than you might think. In 2005, NASA astronaut Leroy Chiao, commanding the 10th expedition to the International Space Station, faced Tax Day while in orbit. He asked his sister, an accountant, to file an extension for him, and he completed his taxes after returning to Earth on April 24.

20. Even the U.S. president must pay taxes.

The president is required to pay their fair share of taxes, though they do receive some benefits, such as a nontaxable travel account valued at $100,000 and a nontaxable entertainment account capped at $19,000.

21. The IRS regularly updates tax regulations.

Starting with the Reform Act of 1986, the IRS mandated that taxpayers include their dependents’ Social Security numbers. This change led to millions of children suddenly “vanishing” from tax returns [PDF], as people could no longer claim them without proper documentation.

22. The majority of taxpayers file electronically.

In 2022, 93.8 percent of individual tax returns were submitted online. Paper filers face longer wait times for refunds and are 40 times more likely to make errors compared to those who file electronically.

23. You likely qualify to file your taxes at no cost.

If your adjusted gross income is $73,000 or less, you qualify for IRS Free File. This applies to 70 percent of filers, or roughly 100 million Americans. Even if your income exceeds $73,000, you can still use Free File, though it won’t guide you step-by-step, requiring confidence in handling your taxes independently.

24. Founding Father Sam Adams struggled with tax collection.

Adams was elected as Boston’s tax collector in 1756 but showed little enthusiasm for the role. He often ignored tax debts from those facing financial or medical hardships, earning him a Robin Hood-like reputation among the working class. However, as the tax collector was personally responsible for uncollected taxes, Adams found himself owing over £8000 by 1765—equivalent to nearly £1.2 million today. Despite attempts to recover the debts, he had little success. According to the New England Historical Society, his affluent friends eventually covered most of his debt.

25. Vermont once declared war on Germany for tax reasons.

Before the U.S. entered World War II, Vermont legislators approved a $10 monthly bonus for residents in military service. However, issuing this bonus during peacetime would have triggered a new tax. To avoid this, the bonus had to be distributed during a period of armed conflict.

Although war hadn’t been officially declared, President Franklin Roosevelt had authorized the U.S. Navy to attack German ships in defensive waters. Vermont lawmakers deemed this sufficient to declare war on Germany in September 1941—three months before the U.S. officially did.