<P> For most of the history of civilization, these preconditions did not exist, and taxes were based on other factors . Taxes on wealth, social position, and ownership of the means of production (typically land and slaves) were all common . Practices such as tithing, or an offering of first fruits, existed from ancient times, and can be regarded as a precursor of the income tax, but they lacked precision and certainly were not based on a concept of net increase . </P> <P> The first income tax is generally attributed to Egypt . In the early days of the Roman Republic, public taxes consisted of modest assessments on owned wealth and property . The tax rate under normal circumstances was 1% and sometimes would climb as high as 3% in situations such as war . These modest taxes were levied against land, homes and other real estate, slaves, animals, personal items and monetary wealth . The more a person had in property, the more tax they paid . Taxes were collected from individuals . </P> <P> In the year 10 AD, Emperor Wang Mang of the Xin Dynasty instituted an unprecedented income tax, at the rate of 10 percent of profits, for professionals and skilled labor . He was overthrown 13 years later in 23 AD and earlier policies were restored during the reestablished Han Dynasty which followed . </P> <P> One of the first recorded taxes on income was the Saladin tithe introduced by Henry II in 1188 to raise money for the Third Crusade . The tithe demanded that each layperson in England and Wales be taxed one tenth of their personal income and moveable property . </P>

Various stages in assessment of income in detail