Law Office of Paul Black - April 2022

Law Office of Paul Black - April 2022

404.410.6820

www.Georgia-EstateLaw.com

April 2022

The History of Income Tax IT’S TAX SEASON!

THE 16TH AMENDMENT Democratic Congressman Cordell Hull wanted to add an income tax to a tariff bill in 1909. The Conservatives did not like this idea and proposed a constitutional amendment, which they hoped would fail. A majority of state legislatures, however, ratified the amendment, and on Feb. 25, 1913, the 16th Amendment went into effect. Ratifying the amendment only took a few days. Historians believe that this was because many people did not like the high tariffs in effect at the time. The first income tax law under the 16th Amendment went into effect in 1914 and was a graduated tax of 1% on incomes between $4,000 and $20,000, increasing to a top rate of 3% for those earning $50,000 or more. Since the average worker earned only about $800 a year, few people actually had to pay any federal income tax. About 4% of American families made an annual income of $3,000 or more. I hope you enjoyed this history lesson as much as I did! It’s always important to know our history and where our amendments, laws, and regulations stem from. Who would’ve thought that these taxes were established because of the Civil War?

It’s April, and you know what that means? Tax season. The deadline for your 2021 income tax returns is April 18, 2022. If you file your taxes around this time, you could say you are exercising your 16th Amendment right. Although I don’t give my clients advice about taxes, since everyone’s situation is different, I do want to share the history of income taxes with you. I think it’s important for people to understand how we got these taxes and what events led to the first income tax and the 16th Amendment. So, let’s pull out our history books and learn more about taxes. ORIGINS OF THE INCOME TAX Before 1913, the federal government mainly got its money from taxes and tariffs on imported goods. The Civil War made the Union go into millions of dollars in debt. They needed to find a way to make revenue and get themselves out of this hole. Therefore, in 1861, the United States developed its first income tax. Congress placed a 3% flat tax on incomes over $800. In 1862, the federal government passed the nation’s first graduated income tax: People who made between $600–$10,000 were taxed at 3%, while those who made more than $10,000 were taxed at 5%. This income tax didn’t last long; it was repealed in 1872, but it didn’t go away completely. After the war, industrial and financial markets thrived, but the farmers in the South and West were struggling. They sold

their farm products at a low price while paying high prices for manufactured goods because of the taxes and tariffs in place. This led farmers to create organizations such as the Greenback Party, National Farmer’s Alliance, and the People’s Party. These groups protested against graduated income taxes and proposed many reforms. “The Civil War made the Union go into millions of dollars in debt. They needed to find a way to make revenue and get themselves out of this hole. Therefore, in 1861, the United States developed its first income tax.” In 1894, Congress passed a tax bill in which income over $4,000 would be taxed at 2%. This tax, however, was not graduated; it was a flat tax. Not even a year passed before the Supreme Court declared the tax unconstitutional, ruling that Article I, Section 9 of the Constitution prohibits taxes on individuals unless they are on the basis of the population of each state.

Do you have estate planning or elder law-related questions? Write to me at [email protected] with “Asked and Answered” in the subject line. Your identity will be kept confidential. The opinions offered in this column are not intended to replace or substitute any financial, medical, legal, or other professional advice. -Paul Black

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WITH TIPS FROM ‘CHATTER’ Take Your Internal Pep Talks Up a Notch

You probably know about the benefits of positive self-talk, but have you mastered it? If not — or if you’ve never heard that phrase — “Chatter: The Voice in Our Head, Why It Matters, and How to Harness It” by Ethan Kross may be the most important book you read in 2022. Positive self-talk is something most of us engage in daily. It’s the “you can do this” nudge you give yourself to combat dark thoughts like “I don’t know what I’m doing” and “no one will take me seriously” before a big presentation. But few resources give you precise strategies for how to engage in positive self-talk effectively so you can make those negative impulses go away. “Chatter” is an exception to the rule, perhaps because it was written by an actual psychologist! Leaning heavily on scientific research and engaging case studies, Kross offers concrete tips for reducing negative thoughts (what he calls “chatter”) and giving your self-confidence a boost. One of his biggest tips, which drives a big chunk of the book, is the importance of creating “mental distance” during your internal pep talks.

Kross goes over several ways to do this, including trying to “look back” at your current situation from one, five, or 10 years later; comparing this hurdle to tougher ones in your life; and shifting your internal monologue to third person so you can try talking to yourself as if you were your own friend. With these strategies, we can transform our thoughts, rather than avoid them.

Of course, those suggestions just scratch the surface of what’s offered in the book. Kross also goes over how to help your friends, colleagues, and employees eliminate chatter, and how mastering your inner voice will help you thrive under pressure. The magazine Inc. named “Chatter” one of the “4 Business Books That Will Accelerate Your Success In 2022” — don’t miss it.

Mental distance is exactly what it sounds like — stepping back mentally from your worries and problems so you can gain a new perspective.

4 WAYS TO HARVEST POSITIVE VIBES IN SPRING Get Sprung

Have you ever noticed that springtime just feels lighter and brighter? That’s because, believe it or not, the seasons affect us. When spring rolls around, the energy shifts, and it’s up to us to maximize those positive vibes. Let’s examine how we can make the most of spring and inject some color and vibrancy into our lives again after a long winter.

outdoors, or just enjoy the fresh air. Also, many areas observe daylight saving time, which extends sunlight into the evening, so no matter how you choose to spend your extra daylight, make it an adventure.

WELCOME SPRING-CLEANING. It isn’t called spring-cleaning for nothing!

Decluttering, dusting, reorganizing, and tidying up feels great! It’s empowering and refreshing. There is something special about creating more space in your living space that gets the positivity flowing. EAT FRESH, COLORFUL FOODS. During spring, many delicious fruits and vegetables come into season. Berries, oranges, apples, carrots, avocados, cherries, spinach, and kale are all at their peak. Your local farmers market is a great place to get the freshest produce to fuel your body! Spring is a time for new beginnings and positivity. Make the most of this spring season by welcoming a fresh abundance of love and life.

RELY ON COLOR. Colors have the ability to elicit certain emotions and feelings. Tropical tones and pastels are everywhere in spring — the clear sky, grass, and flowers — so allow them to fill your space and take them with you as constant reminders to smile. If you’re up for it, wear some new colors to brighten up your wardrobe, and don’t forget to take in a sunset when you’re able!

ENJOY MORE HOURS OF DAYLIGHT. Spring brings more hours of sunlight and warming temperatures that can give you more time to enjoy your morning cup of coffee outside. You can take an early stroll around the block, get in a workout

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BARRIER 3 Insane Events That Happened at Augusta National Golf Club

Augusta National Golf Club in Augusta, Georgia, is one of the most famous golf courses in the world. The golf club was constructed back in 1933 and has enthralled golfers of every skill level. Augusta is mostly known for the Masters Tournament, one of the four major championships on the PGA Tour. In its nearly 90-year history, Augusta National Golf Club has seen some crazy events. From hostage situations to near-death experiences, there’s no shortage of unbelievable stories that have taken place on the course. Below you’ll find three of the most bizarre events that have occured at this golf club. RONALD REAGAN’S BIZARRE 1983 ROUND Many presidents throughout our country’s history have enjoyed the game of golf, and Ronald Reagan was no exception. While Reagan was in the middle of a round at Augusta, a man named Charles Harris rammed his pickup truck through a locked gate, stormed into the pro shop, took five hostages, and demanded to speak with the president. Reagan left the course after Harris refused to speak to him over the phone, then the police handled the situation from there. Reagan returned the next day to play an uninterrupted round. THE YEARS WITHOUT THE MASTERS During World War II, golf was one of the last things people thought about. After seeing the bulk of their members sent overseas to fight in the war, the owners of the course came up with an alternative way to make money. They decided to allow cattle and turkeys to roam the course before they were ready for market. It took years for the foliage to return to playing shape. DEATH AND RETURN At the 2018 Masters, a man named Johnny Pruitt got to live his dream by attending the championship as a spectator. He never made it to his seat, though, as an irregular heartbeat stopped his heart. Pruitt was taken from the course, and his heart was restarted with a defibrillator before he went into a coma. He awoke from the coma a week later, and Augusta invited him back to attend the 2019 Masters. Inspirational MOMENT

One-Pan Chicken Tacos Inspired by EatingRichly.com

This recipe from TikTok user @violet.cooks almost broke the internet — and you’ll see why! The fried tortillas make it out-of-this-world delicious.

“Of life’s two certainties, taxes remains only one for which you can get an automatic extension.” –Anonymous

INGREDIENTS

•

1 lb chicken breasts, sliced into 1-inch pieces

• • • • •

2 tbsp chipotle powder Canola oil (for frying)

• •

2 tbsp garlic powder

Corn tortillas

2 tbsp cumin

Grated cheddar cheese

Pico de gallo and guacamole salsa (to taste)

DIRECTIONS

1. In a mixing bowl, combine the chicken pieces, garlic powder, cumin, and chipotle powder. Mix until the chicken is coated. 2. In a frying pan, heat the oil. When the oil is hot, add the chicken mixture. Cook on medium heat for 5–8 minutes. 3. Remove the chicken from the pan, and add the corn tortillas (avoid overlapping) so they soak up the juices. Flip the tortillas and repeat. Then, add chicken and grated cheddar to each tortilla and fold it over the filling — in the pan. 4. Cook the tacos for 3 minutes per side until the tortillas are crispy and the cheese is melted. 5. Top with pico and guacamole salsa, and serve!

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Decatur Office Location: Main Location One West Court Square, Suite 750 | Decatur, GA 30030

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INSIDE THIS ISSUE

1

Income Taxes Stem From Civil War Debt

2

‘Chatter’: Your Guide to Thriving Under Pressure Welcome Spring With Open Arms

3

3 Insane Events That Happened at Augusta National Golf Club

One-Pan Chicken Tacos Inspirational Moment

4

A Blood Crisis Is Happening Right Now

Donate Blood to Red Cross YOU CAN BE THE HERO

The American Red Cross is facing a national blood crisis — its worst blood shortage in over a decade, posing a concerning risk to patient care. Amid this crisis, doctors have been forced to make difficult decisions about who receives blood transfusions and who must wait until more products become available. As a result, blood and platelet donations are critically needed to help prevent further delays in vital medical treatments. “While some types of medical care can wait, others can’t,” said Dr. Pampee Young, chief medical officer of the Red Cross. “Hospitals are still seeing accident victims, cancer patients, those with blood disorders like sickle cell disease, and individuals who are seriously ill. All need blood transfusions to live, even as omicron cases surge across the country. They’re doing everything to increase blood donations to ensure every patient can receive medical treatments without delay, but we cannot do it without more donors. We need the help of the American people.”

The Red Cross provides 40% of the nation’s blood, and they are experiencing a 10% decline in the number of people donating. This decline is because of the blood drive cancellations and understaffing Red Cross has experienced since the beginning of the pandemic. Blood cannot be manufactured, so it’s up to us, the American people, to donate when we can. Every blood type is needed right now, especially O positive and O negative. To make an appointment to give blood or platelets, call 1-800-733-2767. You can also book an appointment using the Red Cross Blood Donor app. Please visit RedCrossBlood.org for more information on how you can help and donate.

Now is your time to be the hero our country most desperately needs.

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