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Amendment 16: Income Tax In The United States

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Amendment 16 – Income Tax
The 16th Amendment of the United States Constitution states, “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.”
It is one of the amendments Americans despite the most, because everyone would like to earn money and to be able to keep all of it. In the United States of America, federal income tax in imposed not only if you are a citizen, but also if you are a resident. Based on the income of the taxpayer, the tax rate ranges from 0 to 35% of one’s income level. The amendment specifies that people are taxed on all income; you can be charged on money earned from working a job, …show more content…

The revenue goes firstly to social security, providing food and housing to the poor. In 2016, 24% of the federal government’s budget, or $916 billion, paid for social security. The remaining went to medical and health care, building, repairing, and maintaining infrastructures, and the army.
Our military force is one of the main reason why the 16th amendment was first ratified. Many progressive Republicans feared the increasingly large and sophisticated military of Japan, Britain, and other European powers. A bigger government and a bigger army required a larger and steadier source of revenue to support it.
The 16th amendment was also passed for the following reason: members of Congress were apprehensive of the fact that many of the wealthiest Americans were beginning to gain too much economic power. There was a progressive atmosphere, and people thought the existing government policy had allowed the rich to gain even more money. They wanted something to balance the wealth among classes and protect the interests of the lower class, and they got it: this amendment is structured to reach the wealthy without overburdening the poor. The richer you are, the more you …show more content…

It had usually been during war time; the income tax was the first peacetime income tax. During the War of 1812, Secretary of Treasury Alexander J. Dallas made the first demand to levy an income tax, but it was never put into effect. During the Civil War, the Revenue Act of 1861 was ratified. At first, anyone earning more than $800 would pay a tax of 3%. Eventually, people making more than $600 would have to pay up to 5%. This income tax stopped in 1866, after the war ended. Before the 16th amendment, there were only excise taxes and custom duties. There were also federal taxes, such as taxes on imports, liquor, tobacco, and other related goods, as well as state taxes, such as poll, real estate and sales taxes. But income taxes were a more stable source of

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