Federal Income Tax Turns 100

Although the federal government had successfully operated without an income tax for 124 years under the Constitution, the American people in 1913 chose to ratify the Sixteenth Amendment, giving Congress the “power to lay and collect taxes on incomes, from whatever source derived.” It is reasonable to expect that the people would not have granted such a broad power to the federal government unless circumstances required it. So what prompted this desperate action? Why was an income tax suddenly necessary in America 100 years ago?
In truth, it wasn’t needed at all. Total federal tax revenue was at an all-time […] Continue Reading…