USA HISTORY

Detailed explanation-1: -The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. It was passed by Congress in 1909 in response to the 1895 Supreme Court case of Pollock v. Farmers’ Loan & Trust Co.

Detailed explanation-2: -Cordell Hull introduced the first income tax law under the newly adopted Sixteenth Amendment. He proposed a graduated tax starting with a 1-percent rate for incomes between $4, 000 and $20, 000 increasing to a top rate of 3 percent for those earning $50, 000 or more.

Detailed explanation-3: -The origin of the modern income tax began with ratification of the Sixteenth Amendment to the U.S. Constitution. The amendment authorized Congress to institute a graduated income tax on the earnings of American workers. This power thus enabled the passage of the Revenue Act of 1913.

Detailed explanation-4: -The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

Detailed explanation-5: -Passed by Congress on July 2, 1909, and ratified February 3, 1913, the 16th amendment established Congress’s right to impose a Federal income tax.