war history on taxes

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  • Taxes have been around for a long time, being introduced just before World War 1 and being used throughout the war.
  • Taxes were first introduced in 1867 when the government was given the responsibility to raise money giving the federal government the responsibility of collecting taxes for roads, bridges, buildings, etc and the provincial government the responsibility of collecting taxes for education, health, and welfare. 
  • At the beginning of World War 1 when Canada sided with Britain the Federal government introduced Corporation tax in 1916. This tax was used to finance the war.
  • To temporarily finance the war Income Tax War was introduced in 1917 covering both personal and corporate income. 
  • Sales Tax were introduced in 1918 at the end of World War 1 when Veteran pension and debt interest had to be paid off.
  • In 1948 the temporary Income Tax War Act was made permanent and was renamed as Income Tax.
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