Income Taxes and Edward Decker in the 1860s

April 15 looms as a day dreaded by many Americans. The day that offers so much debate is something most are used to because, in one form or another, taxes have always been around. Even the Bible recounts stories of taxes and loathing for tax collectors.

Ironically, taxation in the U.S. began not with U.S. imposed taxes but with protests against the British in the 1760s. School children remember hearing about the Boston Tea Party, orator Patrick Henry is remembered for delivering the line, "Give me liberty, or give me death," and "Taxation without representation is tyranny" became the cry of the American Revolution.

In Kewaunee County's early days, there were poll taxes, road taxes and property taxes. Poll taxes were at times worked off. County farmers maintained roads past their property, roads that had been surveyed as early as 1853 by County Board supervisors such as Orin Warner, Abraham Hall and John Hughes. Wolf River's first real surveyor, George Elliott, arrived a few years later. As for property taxes, they resulted in hundreds of foreclosures in the 1860s. Some lost property not knowing they were in arrears for only a few cents.

A U.S. income tax proposed during the War of 1812 never got off the ground. But it did during the Civil War, and it was levied on those, such as Edward Decker, whose incomes exceeded $800. A year or so after the law was enacted it was revised, and then eliminated in 1872. Twenty years later William Jennings Bryan was leading the Democratic Party when it advanced an income tax. Such a tax became part of the party's platform in the 1908 presidential election. This year - 1913 - marks the 100th anniversary of the income tax. The 16th Amendment was ratified in 1913 and the U.S. has had an income tax without interruption ever since.

Kewaunee County's Edward Decker was paying income taxes before many of his fellow citizens even knew what such taxes were. Decker's income taxes of the 1860's have survived, thus providing a glimpse into the man and the U.S. Internal Revenue of the period.

Tax documents indicate that the yearly income taxes were to be paid before the first Monday in May. Shirking one's duty added 25% to the tax due. Guardians and trustees were also charged with filing the papers. Questions needed answering. Did one's wife or minor child have an income during the year? Did one have stocks, sell property, have gold or government securities, keep an account book, claim deductions and so on?

During 1865 Mr. Decker paid employees $2,300, and said he earned $100 on building rents for which he could deduct $25 in repairs. He reported earning $100 in profits from property sold but there was nothing about farming operations or livestock. Decker reported earning $800 from private business and $400 from his work as a government employee. He had an income of $950 that was a debt or income considered lost in a previous year and he paid tax on that. Decker's real estate investments lost $500 and he paid out $275 in interest. Decker was also able to deduct $200 as a salary paid out to a person in the U.S. military. It is likely this was paid to Edward Carl, his Civil War substitute who served in the 22nd Infantry.

When filling out a list of taxable articles, Decker declared a tax of $2.00 on his gold watch as his was "wholly or in part of gold or gilt, kept for use, and valued at above one-hundred dollars." His tax would have been a dollar had the watch been worth $100 or less.

Decker did not report any kind of carriage, or pianofortes, organs, melodeons, a billiard table, gold or silver plate or a yacht. And when he had the papers filled out, his signature attested to his truth under the laws of the United States. For an unidentified reason, Mr. Decker was assessed $3.89 payable on the last day of March in 1869. Had he not paid the tax by that time, 5% would be assessed with an additional 1% per month. Edward Decker paid Internal Revenue's Special Tax for the year ending on May 1, 1871. This $10 tax was due from the milling business at Tisch Mills owned and operated by Decker and Voyta Stransky.

No doubt there were a few other Kewaunee County men who paid income taxes during the Civil War. If their papers did survive in the recesses of an attic, they could have easily gone out during the paper drives supporting the World War ll effort, a time when so much personal history was lost.

As for gold watches, carriages, pianos and other luxury items, they showed up on census forms. One census showed Kewaunee County having very few gold watches, prompting the Door County Advocate to question the accuracy of the reporting as it felt Kewaunee County was much wealthier than Door and surely had many more gold timepieces. Not much has changed in 150 years: everybody wants to be rich, but nobody wants to pay taxes.

Sources: Decker Collection, ARC, University of Wisconsin-Green Bay; An-An-api-sebe:Where is the River?; Door County Advocate.