On February 3, revised in 1913 approved 16's 100th birthday. Its title was William Howard Taft President, and approved the efforts to ensure that more the person with higher income to pay taxes, the government is not entirely dependent on goods customs duties and taxes.
This is the first issued by the state income tax. In fact, this is the third time. However, this third try it behind the power of the amendments to the constitution, this is still valid today.
The founder and generation of leaders then they are not big idea income tax. Tariffs and sales tax, the federal government in early provided money.
But the financial needs of civil war led to the first national income tax.
Civil war brought income tax alliance a variety of financing tool, it used to the confederacy. In addition, the government also issue bonds and use of consumption tax.
The confederacy has its own version of the income tax, also, it is not so effective.
Went to the reconstruction period, the eu's income tax income tax return to the idea of twenty years later.
The author John Steele Gordon in 2011 wrote a good, short history of income tax, the Wall Street journal, the beginning and end of the civil war of the 14th amendment, the direct consequences.
Steele said, cause the President grover Cleveland cavaliers management combination of a huge government surplus and heavy tax burden, to consumer transfer the second income tax law in 1894.
"The new tax, but, from the civil war the exemption of income tax, only the poor are very different. A new strike rich, collect the tax of 2%, the income of 4000 yuan of above. Steele said:" less than 1% of American families in 1894 to achieve income threshold.
The second income tax law was soon overthrew the Supreme Court in 1895 decided to pollack v. farmers loans and trust.
In 5 to 4 decision, the court said, Cleveland income tax is direct tax, levy, interest, dividends, rent, in violation of the provisions of the constitution, for it. This behavior violated the "constitution" article 1, article 2, this requires state of the population proportion of tax levy.
Taft President took office in 1909, public outcry growth in a undertaxed tax the rich and the poor of the burden.
In June 1909, Taft lobbying congress to write the article 16 of the amendment. He explained, pollack decision allows the federal government to impose consumption tax shall pay enterprise income tax.
"Under the condition of pollock left in the national government decided to impose consumption tax as enterprise income tax, so as to achieve the same goal, is definitely against urged income tax advice measures," he said.
President bush defines a basic system to collect and citizens and enterprise income tax law. He also understood that, the revision will not allow the Supreme Court overturned a personal income tax basis pollack decision.
"Then, I suggest, first, through a joint resolution, two-thirds of the senate, the proposed amendments to the constitution gives the federal government reserves the right to levy and collect income tax, and distribution in several countries, according to the census, the second, formulate, hang up part of the revenue measures, whether as an alternative, in addition, inheritance tax, 2% of all enterprise's consumption tax, their net income, Taft said."
Congress passed the 16th amendment "resolution, after a month, but until the beginning of 1913, when American Delaware became the 36th state approval amendment has been approved.
The incoming President Woodrow Wilson in 1913 to promote the tax bill, including income tax, along with the change of tariff.
In 1914, the first 1040 forms. This is three pages long. 16 the revised income tax law, long and page, about 400 pages long federal tax law.



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