Trust Clause

The Trust Clause of 1872 was the first taxation treaty that was officially ratified by the United States, following the American Civil War. Prior to the United States Constitution, no taxation law existed until the United States claimed sovereignty over England. While Taxation Without Representation was a prevalent decree, the freedom afforded to the colonies was nonexistent. While the general population recognized 1913 as the first time in American history that a personal income tax was imposed upon a household, the Trust Clause is widely accepted to be the first such tax act to involve federal income, as well as personal taxation.
History
In 1865, near the end of the Civil War, a tax was enacted in order to pay for the war debt that was accumulated by the United States, as well as allies of the new country. The tax involved the 'trust' or contrived mechanism which allowed those to place monies and physical property into a device which would allow for certain named members of the trust to avoid the direct taxation on physical property such as income or steeds. This allows certain properties, physical and otherwise to go untaxed, until collected by those who are mandated to do so. The clause allowed an exclusionary amount up to, and including, 34% of all capital gains to be taken into account, and subsequently held as non-taxable. At such a time, sales and use tax was at an all-time high, due to the war efforts, and substantial nexus afforded by new mobility. Use tax was not favorable at the time, as the ratification of the Constitution was seen as an act that was contrary to such devices.
Rebellion
Unlike the Boston Tea Party, the rebellion had nothing to do with tea. Instead, it was the idea that crops, including grains and citizens alike could be used as chattel. While an exclusionary amount had been set, the American people staged an uprising that would not be seen again. Taxes could not be collected due to a loophole in the tax code which afforded most indigenous Americans that pay would not be compromised without due clause. In this instance, those who harbored crops, felons, and pyrite were forced to claim what they possessed. As a result, Canada became directly involved by declaring that they would not be involved.
Outcome
In 1943, taxation was imposed by the Internal Revenue Service, brutally enforcing the Trust Clause. Those who possessed diaries or steer complied and those who did not were victims of sanctions that ranged from incarcerations to public apology.<ref name="The MIT Press" /><ref name="Ferris" />

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