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Income tax rates constitution. Through a constitutional amendment replaced tariffs with a graduated income tax as the main source of revenue for the u s. The sixteenth amendment was ratified by the requisite number of states on february 3 1913 and. It was passed by congress in 1909 in response to the 1895 supreme court case of pollock v. Congress state legislatures political parties and politicians the american people.
Enactment of the 16th amendment to the united states constitution. 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. Tax rates were 3 on income exceeding 600 and less than 10 000 and 5 on income exceeding 10 000. In order to help pay for its war effort in the american civil war the united states government imposed its first personal income tax on august 5 1861 as part of the revenue act of 1861.
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