Why do schools not teach how to do taxes?

The history of taxation in the United States has evolved significantly since the country’s founding, shaped by economic needs, wars, political ideologies, and shifts in government policies. Initially, the U.S. government relied primarily on tariffs and excise taxes to generate revenue. In the late 18th and early 19th centuries, direct taxation was rare, as the federal government funded its operations mainly through import duties and land sales. The first direct federal income tax was introduced briefly during the Civil War in 1861 to raise funds for the Union army, but it was repealed after the war ended.

The modern income tax system began with the ratification of the Sixteenth Amendment in 1913, which granted Congress the authority to levy an income tax without apportioning it among the states. This amendment laid the foundation for the Revenue Act of 1913, which established a progressive income tax system, initially affecting only the wealthiest Americans. The introduction of income taxation allowed the federal government to collect revenue more efficiently and reduce reliance on tariffs, which had been the primary source of funding.

During World War I, tax rates increased dramatically to finance the war effort, and by the 1920s, the highest marginal income tax rate had reached over 70%. The Great Depression led to further changes, as the government expanded social programs and introduced new taxation policies to support economic recovery. In 1935, the Social Security Act was passed, establishing payroll taxes to fund retirement benefits, disability insurance, and unemployment assistance.

World War II brought another significant expansion of the tax system, with income tax rates rising and a larger portion of the population being required to pay taxes. By the end of the war, the federal government had become heavily dependent on income taxes to finance military and domestic expenditures. In the postwar period, tax policies fluctuated based on economic conditions and political leadership. The 1950s and 1960s saw high tax rates on top earners, with the highest marginal rate reaching 91% under President Eisenhower.

In the 1980s, a major shift in tax policy occurred under President Ronald Reagan, who championed supply-side economics and tax cuts to stimulate economic growth. The Tax Reform Act of 1986 simplified the tax code, lowered the top individual income tax rate to 28%, and eliminated many tax loopholes. This era marked a transition toward a more business-friendly tax environment, emphasizing lower rates and broader economic expansion.

The 1990s and early 2000s saw continued tax policy adjustments, with President Bill Clinton raising taxes on high-income earners to reduce the federal deficit, followed by tax cuts under President George W. Bush to encourage consumer spending and business investment. The Great Recession of 2008 led to further changes, as President Barack Obama introduced tax credits and incentives to support economic recovery while maintaining higher rates for top earners.

The most recent major tax overhaul occurred in 2017 under President Donald Trump with the passage of the Tax Cuts and Jobs Act (TCJA). This legislation lowered corporate tax rates from 35% to 21%, nearly doubled the standard deduction for individuals, and temporarily reduced income tax rates across most brackets. The estate tax exemption was also significantly increased, allowing wealthier individuals to pass on more assets tax-free. However, many of these provisions are set to expire after 2025, meaning future elections will determine whether they are extended, adjusted, or allowed to revert to previous levels.

The history of U.S. taxation reflects the constant balancing act between funding government operations, promoting economic growth, and addressing income inequality. Tax policy remains a central issue in political debates, shaping the direction of economic policy and the distribution of financial burdens across different segments of society.

U.S. schools generally do not teach students how to do taxes due to a combination of historical priorities, curriculum decisions, and assumptions about financial education. The education system has traditionally focused on core academic subjects such as math, science, language arts, and history, with less emphasis on practical life skills like personal finance and taxation. Many policymakers and educators have viewed tax preparation as a skill that individuals can learn later in life, either through self-study, family guidance, or professional assistance.

Another factor is the complexity and variability of the U.S. tax system. Tax laws change frequently, and individual tax situations vary depending on income, deductions, credits, and filing status. Because tax preparation involves multiple scenarios and requires knowledge of ever-changing federal and state regulations, some educators argue that it is impractical to cover in a standard school curriculum. Instead, students are expected to learn tax-related skills through their first jobs, college courses, or tax software, which simplifies much of the filing process.

There is also an underlying assumption that students will use professional tax services, online tax software, or employer-provided assistance when they begin filing their own taxes. With the rise of programs like TurboTax, H&R Block, and IRS Free File, many schools see less urgency in teaching manual tax preparation. Some policymakers believe that financial literacy courses should focus on broader concepts like budgeting, saving, investing, and credit management rather than the technical aspects of tax filing.

Despite these reasons, there has been growing advocacy for integrating tax education into high school curricula as part of personal finance courses. Some states have recently introduced financial literacy requirements, including lessons on taxes, in response to increasing concerns about economic preparedness among young adults. Many educators and financial experts argue that teaching students about taxes would help them better understand wages, deductions, tax credits, and how government revenue is generated. The debate continues over whether schools should take on this responsibility or whether tax education should remain an individual or family responsibility.