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Jan 1, 1812
A hundred years before the 16th amendment was proposed and approved, Congress had begun eyeing income tax as a way to collect money just for the governments use. They first considered having an income tax to help pay for the War of 1812. This action did not take place. -
August 5th, 1861
To help pay for the Civil War expenses, Congress passed The Revenue Act in 1861. This act allowed Congress to collect income taxes from individuals personal incomes to help pay for the war expenses. -
July 2, 1864
Congress enacted a flat rate Federal Income tax, which was later ruled unconstitutional by the Supreme Court. This Income tax was ruled unconstitutional because it was labeled as a direct tax which was not approved to use. -
Jan 1, 1873
After the Civil War was over there was no need for federal revenue, the supreme court let the tax law expire in 1873. The United States then had to find a different way to collect revenue, so most of the federal money came from taxes on alcohol and tobacco. -
May 20, 1894
On this day the Wilson-Gorman Tariff was passed. This federal income tax will impose on the population to each of the states, rather on directly getting the money from the citizens. Individuals with $4,000 or more will have to pay the taxation. In the end a total of 2% of the world population has paid. -
Jan 1, 1909
Fifteen years after the Pollock vs Farmers Loan and Trust Company took place Congress passed the Corporate Excise Tax. This act stated that the excise was set at 1% for each businesses income exceeding $5,000. Later a case came out in 1911, Flint vs. Stone Tracy Company stating this act was unconstitutional. The Supreme Court upheld the act as constitutional. -
June 16, 1909
President William Howard Taft proposed a two-percent federal income tax on businesses and corporations, and also a constitutional amendment to allow previously enacted income tax. An income tax amendment to the constitution was first proposed by Senator Norris Brown. -
July 12, 1909
The proposing 16th amendment was proposed by congress and was submitted into the state legislatures. The western and southern states were the income tax biggest supporters, while opposition was strongest in the northeastern states. The Western and Southern states believed this amendment would provide a better method of gathering revenue on tariffs. -
February 3, 1913
On February 3rd, 1913 the government was given the power to collect income tax on the citizens incomes. Individuals had to pay income tax once before, during the civil war, but was repealed 10 years later. In late 1913 less than one percent of the population paid income taxes due to generous exemptions and deductions. -
April 8, 1895
The Pollock vs Farmers Loan and Trust Company, a guy by the name of 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 as unconstitutional. It was ruled that this tax was more of a direct tax than a presumed indirect.
