Question

Passage of the 16th amendment to the Constitution was actually the third major attempt to impose an income tax (individual or corporate) in the US. What were the first two, and what caused their failure?

Answer 1

Yes, it is true that 16th amendment to the Constitution was actually the third major attempt to impose an income tax (individual or corporate) in the US. 16^th amendment to the consitution was done 1909 but it was ratified in 1903 which empowered congrees to impose taxes on the individuals & corporations.

Before this 16^th amendment two attemp was made which was known as follow;

1. Revenue Act of 1861

2. A flat rate Federal income tax was implemented in 1894 OR Wilson-Gorman Tariff Act of 1894

But these two attempts were failed to achieve determined goals due to followings reasons;

1. Revenue Act of 1861;

U.S. government tried to raise funds for meeting additional funds requirements which arised due to war. But objectives of this revenue act did not achieved because this act was paased hastily so proper taxation mechanism could not be developed for proper implementation of this revenue act that is why this attempt of U.S. government to raise additional funds failed in meeting desired goals. As we know that for successful implementation of any revenue & tax Act, a proper government mechanism is pre-requirement so that all types of loopholes & errors can be eliminated and required revenues can be raised, but such government’s mechanism was not developed at that time that is why this attempt was failed.

2. A flat rate Federal income tax of 1894 OR Wilson-Gorman Tariff Act of 1894;

As we know that in 1894 government passed a new Act which is known as A flat rate Federal income tax of 1894 OR Wilson-Gorman Tariff Act of 1894 for meeting its revenues demands but this Act was ruled unconstitutional by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state. That is why this attempt of the U.S. government also failed in meeting requirements of the government.