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Taxation history of the United States From WikipediaThe history of taxation in the United States began when it was composed of colonies ruled by the British Empire, French Empire, and Spanish Empire. After independenc from Europe the United States collected poll taxes, tariffs, and excise taxes. The United States imposed income taxes intermittently until 1895 when unapportioned taxes on interest, dividends and rents were ruled unconstitutional. The advent of the 16th Amendment to the United States Constitution modified th apportionment requirement in 1913, and sinc then the income tax has become one of the means of funding th Federal GovernmentIncome for federal government Tariffs have played different roles in trade policy and th economic history of th United States. Tariffs wer th largest source of federal revenue from the 1790s to the eve of World War I, until it was surpassed by incom taxes. Sinc th revenu from the tariff was considered essential and easy to collect at th major ports, itwas agr d th nation should hav a tariff for revenue purposes.[1] Protectionism Another role the tariff played was in the protection of local industry; it was the political dimension of the tariff. From the 1790s to the 2000s, the tariff (and closely related issues such as import quotas and trade treaties) generated enormous political stresses whether during the 19th century with the Nullification crisis or the WTO. Origins of protectionism When Alexander Hamilton was the United States Secretary of the Treasury he issued the Report on Manufactures, which reasoned that applying tariffs in moderation, in addition to raising revenue to fund the federal government, would also encourage domestic manufacturing and growth of the economy by applying the funds raised in part towards subsidies (calledbounties in his time) to manufacturers. The main purposes sought by Hamilton through the tariff were to: (1) protect American infant industry for a