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The death tax was originally instituted as a temporary emergency measure designed to raise funds for war-related events. For instance, the first federal estate tax was enacted in 1797 in order to fund the nation’s emerging Navy. Having met this goal, the tax was repealed in 1802. Congress revived the estate tax for national emergencies, such as the Civil War and the Spanish-American War, but later repealed the tax when the crises ended. In 1916, the estate tax became a permanent feature of our tax code. |
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