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Understanding the History of Tax Law Matters!

Where did Corporate and Income Tax Laws come from, and why? You should know!

[Links to sites or articles relating to key years in financial history highlighting a significant tax or business law or governmental mandate]

If the Government Owns a Third of Your Labor, Are You Free?
What is the Definition of 'Income' and Did You Earn Any?
About the Corporation Excise Tax Act of 1909

1909, Congress passed a law providing for a kind of corporate income tax. The Supreme Court declared the law constitutional. To avoid future court decisions, backers of an individual tax worked to amend the Constitution. In February 1913, the 16th Amendment removed the requirement that an income tax be levied in proportion to state population. The Underwood Tariff Act of 1913 included an income tax section

Wages Are Not "Income"

About the shifted tax burden and corporate welfare

"The income tax is the most just because (it) takes from the backs of the masses of the people some of the burden of taxation and lays it upon the pockets of those who do not bear their
just share of the burdens of the government (ie, the very wealthy)."
Congressional Record-House, July 12,1909, page 4410

In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the U.S. tax system. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations.

Constitutional Issues of Taxation


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They Have Passed Laws To Take Your Money and Keep Theirs
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