In 1913, Congress passed legislation that established the modern system of income taxes in the United States. This legislation introduced the 16th Amendment to the Constitution, which gave Congress the power to levy income taxes.
Related terms
16th Amendment: The 16th Amendment refers to an amendment added to the United States Constitution in 1913 that granted Congress the power to tax income.
Income Tax: Income tax is a type of tax levied on an individual or entity's earnings or income. It is based on a progressive system where higher incomes are taxed at higher rates.
Tax Legislation: Tax legislation refers to laws and regulations enacted by Congress that govern taxation, including income taxes. These laws determine how taxes are calculated, collected, and enforced.