In this episode, we explore the history, mechanics, and economic impact of income tax. While often considered a modern certainty, we trace the roots of income taxation back to 9 CE in China and the "Saladin tithe" of 1188. We discuss how the modern income tax was born in 1799 Great Britain under William Pitt the Younger to finance the French Revolutionary War and how it evolved in the United States from a temporary Civil War measure to the permanent system established by the Sixteenth Amendment in 1913.

Join us as we break down the fundamental principles of taxation, including:

• How Rates Work: The difference between flat corporate rates and progressive individual rates, where taxes increase as income rises.

• Residency Rules: Why residents are typically taxed on worldwide income, while non-res ...