As a result of deep hard X-ray observations by Chandra and XMM-Newton a significant fraction of the cosmic X-ray background (CXRB) has been resolved into individual sources. These objects are almost all active galactic nuclei (AGN) and optical followup observations find that they are mostly obscured Type 2 AGN, have Seyfert-like X-ray luminosities (i.e., L_X ~ 10^{43-44} ergs s^{-1}), and peak in redshift at z~0.7. Since this redshift is similar to the peak in the cosmic star-formation rate, this paper proposes that the obscuring material required for AGN unification is regulated by star-formation within the host galaxy. We test this idea by computing CXRB synthesis models with a ratio of Type 2/Type 1 AGN that is a function of both z and 2-10 keV X-ray luminosity, L_X. The evolutionary models are constrained by parameterizing the observed Type 1 AGN fractions from the recent work by Barger et al. The parameterization which simultaneously best accounts for Bargers data, the CXRB spectrum and the X-ray number counts has a local, low-L_X Type 2/Type 1 ratio of 4, and predicts a Type 2 AGN fraction which evolves as (1+z)^{0.3}. Models with no redshift evolution yielded much poorer fits to the Barger Type 1 AGN fractions. This particular evolution predicts a Type 2/Type 1 ratio of 1-2 for log L_X > 44, and thus the deep X-ray surveys are missing about half the obscured AGN with these luminosities. These objects are likely to be Compton thick. Overall, these calculations show that the current data strongly supports a change to the AGN unification scenario where the obscuration is connected with star formation in the host galaxy rather than a molecular torus alone. The evolution of the obscuration implies a close relationship between star formation and AGN fueling, most likely due to minor mergers or interactions.