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First Income Tax
Taxes have been collected since ancient times. The earliest - recorded in Mesopotamia and Egypt - were taxes on imported goods (the equivalent of Customs duties) and on houses and land. Income tax, however, is a relatively recent invention. It was introduced in Britain in 1799 - by Prime Minister William Pitt - with a top rate of just 10 per cent - to help pay for the Napoleonic Wars. Progressive income tax - increasing in proportion as earnings rise - was developed in Prussia in 1853, and has been used in Britain since 1907, in the United States since 1914, and in France since 1917.
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