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How America has gone from a prohibited federal tax to present-day taxes.
*William Federer
- 1787 –U.S. Constitution prohibited a "direct" Federal tax
- 1862 –"Revenue Tax" on incomes went into effect as an emergency to finance the Union during the Civil War
- 1873 – The Civil War ended, emergency over, income tax repealed
- 1895 –The Supreme Court made income tax unconstitutional
- 1913 – 28th President Woodrow Wilson thought tariffs on imports caused wars, so he worked to replace them with an income tax. Income tax was originally only a 1% tax on the top 1% of the richest people in America.
- 1943 – Paycheck withholding began as an emergency effort to get funds to finance WWII
*William Federer