Income Tax first made its appearance during the Civil War, and then only as a (temporary) war measure. Congress later tried unsuccessfully to re-establish it during the depression of the 1890s. The Supreme Court put its hand up, however, ruling that it posed a “communistic threat” to property and was therefore unconstitutional.

The barrier against such taxing was removed in 1913, after the 16th Amendment to the Constitution was adopted. One year later, income tax became a regular source of federal revenue, and part of “the American way of life.”

The tax rate during the early 1900s was only 1 percent of net income over $3,000. By World War I, the maximum tax had soared to 77 percent.

Throughout the 20th century tax laws have changed; rising sharply to pay the high costs of wars, falling during times of peace. Resulting changes over the years have added more than 2,000 pages to the U.S. Tax Code.

©Lori S. Anton