Under the Affordable Care Act, the Feds will tax you if you don’t buy government approved health insurance. They will collect this and give it to private insurance companies. Yes, the IRS now collects taxes for corporations.
The income tax, in it’s current form, has only been around since 1913. At that time, only around 1% of people had to pay taxes since they didn’t apply unless you earned more than $380,000 (inflation adjusted). The income tax rate was 1% for most.