USA HISTORY

Detailed explanation-1: -To compensate for the loss of revenue, the act also levied a graduated income tax (made legal by ratification of the Sixteenth Amendment earlier that year) on U.S. residents. Protective tariffs had been the subject of political debate since they were first passed in 1828.

Detailed explanation-2: -War; the president’s measure, the Underwood Tariff Act of 1913, reduced average rates from 40 percent to 25 percent, greatly enlarged the free list, and included a modest income tax.

Detailed explanation-3: -(The sponsors of the act were Oscar W. Underwood, a Democratic Representative from Alabama, and Furnifold M.

Detailed explanation-4: -The United States Revenue Act of 1913 (also known as the Tariff Act, Underwood Tariff or Underwood-Simmons Act) re-imposed the federal income tax following the ratification of the Sixteenth Amendment. Additionally, it lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich Tariff Act of 1909.

Detailed explanation-5: -An important section of the Underwood Tariff Act was the provision for levying and income tax to make up for the loss of revenue for the government.