When and Why Was The Federal Income Tax Act Enacted?

Question

10 points for the CORRECT answer

Answer 1

The first three answers are at best partially correct but are basically WRONG.

Yes, Lincoln did institute an unconstitutional temporary Federal Income Tax to finance his conquest of the Confederacy. The Federal Courts declared it unconstitutional and ended it.

If there was a Federal Income Tax during the 1890's I don't remember it, and it would have been unconstitutional anyway.

Until the adoption of XVIth Amendment in 1913, it was unconstitutional for the Federal Government to levy direct taxes on the citizenry. All Federal taxes, other than Import Tarriffs and Excise Taxes had to be levied on the States, and in proportion to their population. The XVI th Amendment was intended to give the Federal Government a larger and somewhat more stable income to finance government programs.

Many people claim that the amendment was not legally passed, but if you will count the ratifying states and the dates of their ratification, you will see that it is indeed a part of the Constitution, and should be repealed.

Doc

Answer 2

When the Constitution was adopted in 1789, the Founding Fathers recognized that no government could function if it relied entirely on other governments for its resources, thus the Federal Government was granted the authority to raise taxes. The Constitution endowed the Congress with the power to "…lay and collect taxes, duties, imposts, and excises, pay the Debts and provide for the common Defense and general Welfare of the United States." Ever on guard against the power of the central government to eclipse that of the states, the collection of the taxes was left as the responsibility of the State governments.

To pay the debts of the Revolutionary War, Congress levied excise taxes on distilled spirits, tobacco and snuff, refined sugar, carriages, property sold at auctions, and various legal documents. Even in the early days of the Republic, however, social purposes influenced what was taxed.

Answer 3

In 1862, in order to support the Civil War effort, Congress enacted the nation's first income tax law

Answer 4

1913 as a "temporary measure" to pay for WW1

It was at least the third income tax legislation to have passed since Lincoln instituted one during the Civil War - but the Supreme Court consistently found the direct, unapportioned tax to be unconstitutional. This is why the constitution was changed in 1913!

Answer 5

In 1894, the U.S. Congress adopted an income tax act. See "An Act To reduce taxation, to provide revenue for the Government, and for other purposes," approved August 27, 1894, 28 Stat. 509, ch. 349. Section 27 of this act, 28 Stat. at 553, read as follows:
"That * * * there shall be assessed, levied, collected, and paid annually upon the gains, profits, and income received in the preceding calendar year by every citizen of the United States, whether residing at home or abroad, and every person residing therein * * * a tax of two per centum * * * and a like tax shall be levied, collected and paid annually upon the gains, profits, and income from all property owned and of every business, trade, or profession carried on in the United States by persons residing without the United States."
But, this act was found unconstitutional in the case of Pollock v. Farmers' Loan & Trust Co., 157 U.S. 429, aff. reh., 158 U.S. 601 (1895).

After ratification of the 16th Amendment, Congress adopted a federal income tax act on October 3, 1913. See "An Act To reduce tariff duties and to provide revenue for the Government, and for other purposes," 38 Stat. 114, ch. 16. The individual income tax was imposed in § II(A) (38 Stat. at 166):
"A. Subdivision 1. That there shall be levied, assessed, collected and paid annually upon the entire net income arising or accruing from all sources in the preceding calendar year to every citizen of the United States, whether residing at home or abroad, and to every person residing in the United States, though not a citizen thereof, a tax of 1 per centum per annum upon such income * * *. "
Examination of both the 1894 and 1913 acts clearly reveals that Congress knew about the above principle of law regarding statutory construction and complied with it. Review of these two acts demonstrates that there can be no question that "citizens at home" were subject to the tax.

On September 8, 1916, Congress adopted another federal income tax act. See "An Act To increase the revenue, and for other purposes," 39 Stat. 756, ch. 463. The individual income tax in this act was imposed by § 1:
"Sec. 1. (a) That there shall be levied, assessed, collected, and paid annually upon the entire net income received in the preceding calendar year from all sources by every individual, a citizen or resident of the United States, a tax of two per centum upon such income * * * ."
While the 1913 Act specifically imposed the tax on the income of "every citizen, whether at home or abroad", the 1916 Act imposed the tax on "every individual," a subtle difference in an act with profound differences. The 1916 Act, in § 24 (39 Stat. at 776), plainly repealed the 1913 Act. On October 3, 1917, Congress passed an act which amended the 1916 Act. See "An Act To provide revenue to defray war expenses, and for other purposes", 40 Stat. 300, ch. 63.

Answer 6

Way back in 1916 I believe after the 16th Amendement was passed.