Which amendment established the federal income tax?

Which amendment established the federal income tax?

• A. The 18th Amendment
• B. The 17th Amendment
• C. The 16th Amendment
• D. The 19th Amendment

Answer: (C)

The main idea here is understanding who has the constitutional authority to tax income. Before the Sixteenth Amendment, a federal income tax faced constitutional limits—one landmark ruling held that an income tax had to be apportioned among the states, which effectively blocked a broad federal tax on earnings. The Sixteenth Amendment, ratified in 1913, explicitly authorizes Congress to levy taxes on incomes without apportioning them among the states. This made a federal income tax legal and practical, enabling the creation of the modern system starting with the Revenue Act of 1913, which established the first lasting federal income tax with rates that could be adjusted over time. This shift provided a reliable revenue source to fund Progressive Era reforms and later national programs. The other amendments mentioned address issues like prohibition, the direct election of senators, and women’s suffrage, but they do not authorize or establish the income tax.

The main idea here is understanding who has the constitutional authority to tax income. Before the Sixteenth Amendment, a federal income tax faced constitutional limits—one landmark ruling held that an income tax had to be apportioned among the states, which effectively blocked a broad federal tax on earnings. The Sixteenth Amendment, ratified in 1913, explicitly authorizes Congress to levy taxes on incomes without apportioning them among the states. This made a federal income tax legal and practical, enabling the creation of the modern system starting with the Revenue Act of 1913, which established the first lasting federal income tax with rates that could be adjusted over time. This shift provided a reliable revenue source to fund Progressive Era reforms and later national programs. The other amendments mentioned address issues like prohibition, the direct election of senators, and women’s suffrage, but they do not authorize or establish the income tax.