Changes

==Passage==

==Passage==

In 1909 progressives in Congress, led by Republican Senator Nelson Aldrich, Republican of Rhode Island, proposed a constitutional amendment allowing an income tax.  President [[William Howard Taft]] gave an important speech in support of the effort on June 16, 1909.<ref>[http://www.presidency.ucsb.edu/ws/print.php?pid=68517 William Howard Taft, Special Message To the Senate and House of Representatives]</ref>  Shortly thereafter, a resolution proposing the 16th amendment was submitted on July 12, 1909.<ref>[https://books.google.com/books?id=9883AQAAIAAJ&pg=PA252 United States Congressional serial set, Issue 6773]</ref> The amendment was ratified by one state legislature after another, and on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th amendment took effect. The first income tax was passed in 1913 as part of the Underwood Tariff. Since the new tariff was lower, the government needed a way to replace the lost revenue. Due to generous exemptions and deductions, less than 1 percent of the population paid income taxes at the rate of only 1 percent of net income. However, during [[World War I]] the heavy cost of the war led to much higher rates; the rates were lowered in the 1920s.

In 1909 progressives in Congress, led by Republican Senator Nelson Aldrich, Republican of Rhode Island, proposed a constitutional amendment allowing an income tax.  President [[William Howard Taft]] gave an important speech in support of the effort on June 16, 1909.<ref>[https://www.presidency.ucsb.edu/ws/print.php?pid=68517 William Howard Taft, Special Message To the Senate and House of Representatives]</ref>  Shortly thereafter, a resolution proposing the 16th amendment was submitted on July 12, 1909.<ref>[https://books.google.com/books?id=9883AQAAIAAJ&pg=PA252 United States Congressional serial set, Issue 6773]</ref> The amendment was ratified by one state legislature after another, and on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th amendment took effect. The first income tax was passed in 1913 as part of the Underwood Tariff. Since the new tariff was lower, the government needed a way to replace the lost revenue. Due to generous exemptions and deductions, less than 1 percent of the population paid income taxes at the rate of only 1 percent of net income. However, during [[World War I]] the heavy cost of the war led to much higher rates; the rates were lowered in the 1920s.

The Sixteenth Amendment settled the constitutional question of permission to tax income and, by so doing, effected dramatic changes in the American way of life.  The states which ratified the amendment are as follows:<ref>[https://books.google.com/books?id=9883AQAAIAAJ&pg=PA253 United States Congressional serial set, Issue 6773]</ref>

The Sixteenth Amendment settled the constitutional question of permission to tax income and, by so doing, effected dramatic changes in the American way of life.  The states which ratified the amendment are as follows:<ref>[https://books.google.com/books?id=9883AQAAIAAJ&pg=PA253 United States Congressional serial set, Issue 6773]</ref>