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Expanded. Added Theodore Roosevelt's role in the revival of progressive taxation; Taft's advocacy, states ratified.
[[Image:Hauserlaw.jpg|thumb|275px|[[Hauser's law]]]]
[[Image:Hauserlaw.jpg|thumb|275px|[[Hauser's law]]]]
'''Income tax''' is a tax levied by government on the income of individuals and businesses. The income tax was first introduced in the [[United States]] in 1862 as a levy on the salary of federal officers. In 1913, the [[Sixteenth Amendment]] to the Constitution made clear the federal government can collect taxes from any source, free from the previous requirement to apportion the tax among the [[states]] in proportion to their [[census]] [[population]]s.
'''Income tax''' is a tax levied by government on the income of individuals and businesses, championed by progressives.
In 1913, the [[Sixteenth Amendment]] to the Constitution made clear the federal government can collect taxes from any source, free from the previous requirement to apportion the tax among the [[states]] in proportion to their [[census]] [[population]]s.
==History==
==History==
The Amendment won near-unanimous support from conservatives at the time. The federal income tax started low but became high during [[World War I]]; it was lowered in the 1920s by the conservatives. Most states and some localities (especially New York City) levy their own income tax. Taxes were raised by Republican President [[Herbert Hoover]] in 1932, and jumped to very high levels during [[World War II]] to pay for the war. The '''[[Withholding|withholding tax]]''' was introduced in 1943 so people would pay taxes from every paycheck, instead of waiting until next spring.<ref>The withholding tax was devised by economist [[Milton Friedman]], at the time a liberal.</ref>
The income tax was first introduced in the [[United States]] in 1862 as a levy on the salary of federal officers, which was repealed in 1872. The tax was again introduced by the Wilson-Gorman Tariff Act of 1894, but was struck down by the Supreme Court the next year in [[Pollock v. Farmers Loan & Trust Co.]]. This court decision had progressives seething with anger and hatred for many years.
The issue of the income tax was first resumed in 1906 with strong support from then President [[Theodore Roosevelt]],<ref>[https://www.forbes.com/sites/jimpowell/2011/12/08/obama-and-teddy-roosevelt-both-progressives-both-clueless-about-the-economy/ Obama And Teddy Roosevelt: Both Progressives, Both Clueless About The Economy]</ref> and was promoted in 1909 by President Taft.<ref>[http://www.taxhistory.org/www/website.nsf/Web/THM1901 The Income Tax Arrives]</ref>
With Taft's backing, the Amendment won near-unanimous support from conservatives at the time and developed into the [[Sixteenth Amendment]]. By the time of [[Woodrow Wilson]]'s inauguration on March 4, 1913, roughly 40 states had ratified the amendment.
The federal income tax started low but became high during [[World War I]]; it was lowered in the 1920s by the conservatives. Most states and some localities (especially New York City) levy their own income tax. Taxes were raised by Republican President [[Herbert Hoover]] in 1932, and jumped to very high levels during [[World War II]] to pay for the war. The '''[[Withholding|withholding tax]]''' was introduced in 1943 so people would pay taxes from every paycheck, instead of waiting until next spring.<ref>The withholding tax was devised by economist [[Milton Friedman]], at the time a liberal.</ref>
Income taxes are collected by the [[Internal Revenue Service]]. Some [[Republicans]], who advocate a smaller government and believe that it would be more efficient and less expensive, work hard to cut income taxes.
Income taxes are collected by the [[Internal Revenue Service]]. Some [[Republicans]], who advocate a smaller government and believe that it would be more efficient and less expensive, work hard to cut income taxes.