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During early U.S. history, taxes for the federal government were raised from what source?Income taxesSales taxesImport taxesProperty taxes

Question

During early U.S. history, taxes for the federal government were raised from what source?

  • Income taxes
  • Sales taxes
  • Import taxes
  • Property taxes
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Solution

Break Down the Problem

  1. Identify the types of taxes listed in the question.
  2. Determine which type of tax was primarily used to raise federal government revenue during early U.S. history.

Relevant Concepts

  • Income Taxes: Taxes on earnings and wages, which were not common in early U.S. history.
  • Sales Taxes: Taxes on sales of goods and services, more commonly adopted in the 20th century.
  • Import Taxes: Also known as tariffs, these are taxes on imported goods and were a significant revenue source in early U.S. history.
  • Property Taxes: Local taxes imposed on property ownership, not primarily a federal tax source.

Analysis and Detail

During the early history of the United States, the federal government primarily relied on tariffs and import taxes as a significant source of revenue. These tariffs were applied to goods imported from other countries and were essential for funding government operations in the absence of a federal income tax, which was legislated much later.

Verify and Summarize

Import taxes were the main source of revenue for the federal government during early U.S. history. This reliance on tariffs can be traced back to the Constitution, which grants Congress the authority to impose taxes.

Final Answer

The correct answer is Import taxes.

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