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Income Tax Law(Unconstitutional)
War debts are greater than tariffs and excise revenues so congress passed the federal income tax law. never enacted because the consitution bans direct tax on property -
Amends law
Congess Amends the law and gets it passed, it is the first tax based on people's ability to pay -
Rate Increased
Income Tax rate is increased to 5% and 10 % tax brackets. -
Repealed
The federal income tax is repealed -
New Version
new version passed with a flat rate of 2% -
Unconstiutional
the flat rate is declared unconstitutional because any direct tax is to be divided among the states based on population. -
Sixteenth amendment proposed
the 16th amendment would allow for the federal government to create an income tax without reguard for population of states. -
16th amendment passed
the 16th amendment is passed