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The Commissioner of international revenue started to tax people %3 if the people's income was $800. It was later changed to 5% for incomes between $600 to $5,000. 10% was taxed on people's income greater than $5,000. Congress later repeals income tax after the war is over. -
Congress created another income tax of 2% on people's income that was greater than $4,000. Opponents did not like it because it took away their wealth and enterprising. -
Charles Pollock argues that the white states imposed tax was considered to be a direct tax. The Supreme court ruled in favor of Pollock and ruled the imposed tax unconstitutional. It was ruled that this tax was more of a direct tax than a presumed indirect one. -
The federal income tax is imposed based on the population of each state rather than getting money directly from people. People with an income of $4,000 or more will pay the tax. It then ended up being 2% of the country. -
On July 2, 1909, the 16th amendment was passed. Later on, it would be ratified. During the Civil War, congress passed a revenue act in 1861. This included a personal tax on personal incomes to help pay the war expenses. -
Congress ratified the 16th amendment. The amendment established congress's right to impose a federal income tax. This now had a formal way for the government to collect taxes. -
Once the 16 amendment was ratified, congress imposed a 1% tax on people's income greater than $3,000 and 6% on people's income more than $500,000. The taxes then only affected a small portion of the population. -
Congress raises additional taxes to help finance WWI. This increased the top rate of income tax to 77%, which is the highest in history. -
Congress inflicted an income tax on people with an average income. Many people back out of the situation because they haven't saved up to pay the taxes. The government creates a new system and made it mandatory to collect income taxes. Employers are allowed to deduct the tax employees have from their salaries before paying them. -
To pay for all of the expenses of WWII, congress imposed a tax on people with an average income. Employees were required to deduct the tax from their pay. The money that was left over went back to the workers.