Before the 16th Amendment, a federal income tax was technically illegal, as stated in Article I, Section
9 of the Constitution : “No capitation, or other direct, tax shall be laid, unless in proportion to the census
or enumeration herein before directed to be taken.” Therefore, the federal government had to rely on
land sales, excise taxes, and tariffs to raise revenue. In times of crisis, however, these measures were
simply not enough. During the Civil War, when the Union desperately needed funds, Congress passed
the Revenue Act (1861), which included a provision for the nation’s first income tax. Out of necessity,
the Supreme Court overlooked the act’s unconstitutionality. The first rate was a 3% tax on all incomes
over $800, or $21,000 in 2013 dollars, but in 1862 Congress amended the act and introduced a multi-
tiered system, with a 3% tax on all incomes up to $10,000 and a 5% tax on any over that amount. In
addition, the duty was deducted directly from the worker’s paychecks so that they would never miss the
money. Congress knew it could not collect the blatantly unconstitutional tax any longer than was
necessary, so in 1872, a few years after the close of the war, the Revenue Act was repealed. However,
the idea of an income tax could not be abolished. There were many, especially among the farmers in the
south and west, who believed that the wealthy eastern bankers and industrialists were not paying their
fair share. At the urging of these malcontents, Congress passed another income tax bill in 1894 that
imposed a 2% tax on all incomes over $4000, or $21,000 in 2013 dollars. The Supreme Court
immediately struck it down as unconstitutional. This action still did not kill the idea, and progressive...
... middle of paper ...
...venue? Tax Policy Center, 13 Sept. 2011. Web. 29 Jan. 2014. .
"History of the 16th Amendment." Desert Sands Educational Foundation, n.d. Web. .
"The Ratification of the 16th Amendment." US House of Representatives: History, Art & Archives. N.p., n.d. Web. 28 Jan. 2014. .
"16th Amendment to the U.S. Constitution: Federal Income Tax (1913)." Our Documents, n.d. Web. 28 Jan. 2014. .
Skousen, W. Cleon. "History of the 16th Amendment." Latterday Conservative. N.p., n.d. Web. 28 Jan. 2014. .
June 25, 1798 . The Act was the first federal legislation that dealt with the
September 1791, Robert Johnson was one of the many attacked for being a tax collectors, which are collecting the tax on distilled liquor. This tax is the first federal tax on American products. Gi...
Sixteenth Amendment- Authorization of an Income Tax – Progressives thought this would slow down the rising wealth of the richest Americans by using a sliding or progressive scale where the wealthier would pay more into the system. In 1907, Roosevelt supported the tax but it took two years until his Successor, Taft endorsed the constitutional amendment for the tax. The Sixteenth Amendment was finally ratified by the states in 1913. The origin of the income tax came William J Bryan in 1894 to help redistribute wealth and then from Roosevelt and his dedication to reform of corporations. I agree with an income tax to pay for all of our government systems and departments, but I believe there was a misfire with “redistributing wealth.” The redistribution is seen in welfare systems whereby individuals receive money to live. This is meant to be a temporary assistance, but sadly, most that are in the system are stuck due to lack of assistance in learning how to escape poverty. There are a lot of government funded programs, but there is no general help system to help lift people up and stay up, so there continues a cycle of
Imagine living in a country where no citizen has a say in the government’s actions. Envision a nation where the ruler can tax people without permission and the common people are forced to obey without question. That was life in The Colonies before the year of 1776, when the Declaration of Independence was created. Great Britain passed laws whether it benefited the people or not. Before the Declaration of Independence was composed, a plethora of unnecessary taxes were approved. These taxes sent many colonists into debt. According to “The Declaration of Independence, 1776,” published on Office of the Historian, a famous tax called the Stamp Act was passed by Parliament. This tax forced colonists to purchase stamps for every paper product
Linder, Doug. "The Nineteenth Amendment." The Nineteenth Amendment. University of Missouri-Kansas City Law School, 2001. Web. 19 Dec. 2013. http://law2.umkc.edu/faculty/projects/ftrials/conlaw/nineteentham.htm
Directly off of the IRS Federal Government website, the 2014 United States Federal Income Tax Rates are as follows. The top one percent for single filing pays $118,118.75 plus thirty-nine point six percent on taxable income over $406,750. The top one percent for married filing jointly pays $127,962.50 plus thirty-nine point six percent on taxable income over $457,600. The top one percent for married filing separately pays $63,981.25 plus thirty-nine point six percent on taxable income over $228,800. The top one percent for head of household filing pays $123,424.00 plus thirty-nine point six percent on taxable income over $432,200. (1)
Reid, John Phillip. Constitutional History of the American Revolution / the Authority to Tax. Madison, WI: Univ. of Wisconsin, 1987. 33. Print.
What sounds like such a wonderfully simple concept, is not as straightforward as it should be. The 14th Amendment was ratified on July 28, 1868, shortly after the Civil War ended. I...
In the year 1791, Congress exercised a tax on whiskey and other distilled spirits to assist in the lessening of the federal debt. Hamilton supported the tax owing to the fact that one of his goals was to reduce federal debt. Many farmers in Pennsylvania and Virginia troubled by the tax for the fact that they could no longer make money from the wheat used in whiskey. Angry mobs attacked
xvii[xvii] “The Constitution of the United States of America” from American Politics: Classic and Contemporary Readings (Boston, MA: Houghton Mifflin Company, 1999) pgs 566-572. Article I, Section 2, Clause 1.
Liberty( Rubel, 5). Then there was the Townshend Acts which had a similar outlook just
After the French and Indian War ended in 1763, Great Britain had nearly gone bankrupt paying for the war. The British thought it was only logical to start new taxes against the colonists. After all, to the British, they had fought the war in the name of the colonies and in what they believed was in their best interest. Many different types of taxes came and went to help pay for the debt. Over time, the
The first United States Congress, wanting a direct tax that was not too difficult and stress-free to accumulate, so they voted for and passed the Tariff Act of 1789. This was a key Acts in the constitution of 1789 and congress wanted this Act to be at the front of all the Acts that they had coming fore. In section one of the constitution the sole purpose of this Act was stated, "Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise:"(Eicher, 2013).
Vile, John R., ed. Encyclopedia of Constitutional Amendments, Proposed Amendments, and Amending Issues 1789-1995. N.p.: ABC-CLIO, 1996. Print.
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.