How did taxation effect the Civil War?

Taxation played a crucial role in financing the Civil War for both the Union and the Confederacy. The Union implemented a federal income tax and issued bonds to raise funds, enabling it to sustain its military efforts. In contrast, the Confederacy struggled with taxation due to a lack of established infrastructure and resistance to centralized authority, leading to significant financial difficulties. Ultimately, the differing approaches to taxation and financial management contributed to the Union's ability to sustain its war efforts more effectively than the Confederacy.