Economics becomes a science · 1770s–1920s
1896
The first certified public accountants
New York creates the CPA title, and accounting becomes a licensed profession.
In 1896 New York passed the first US law creating the title of certified public accountant, open only to those who passed an exam. Other states followed, and once the federal income tax arrived in 1913, preparing returns became a big part of the work.
Accountants and tax preparers often charge an up-front retainer to take a client on, then fees for the work itself.
💡 Why it made sense then
As companies and taxes grew more complicated, investors and governments needed someone they could trust to check the numbers.
🎮 In Journey Shares
The tax accountant charges a one-time $1,000 retainer when you first hire them, then 0.25% of what they pay for you on tax day, half the late penalty.
Ideas it gave us
- 🧮 Capital gains tax
Capital gains tax is tax on the profit from selling an investment for more than you paid. In the US, gains on assets held over a year are taxed at lower long-term rates (0%, 15% or 20%) than short-term gains, which are taxed as income.
- 🧮 Tax day
Tax day is the deadline to file your return and pay what you owe. In the US it's usually April 15, and paying late adds penalties and interest.
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