Click on the point for each income listed. The first diagram represents the 1913 law, and the next one represents today's law. Big difference! In 1913 only 1% of the population paid income tax.One of Wilson’s most important financial reforms was the federal income tax, a progressive tax, made possible by the 16th Amendment and enacted by the Revenue Act of 1913. We may not like handing over that cash, but it is today the primary source of revenue that keeps our government running.
Click on the point for each income listed. The first diagram represents the 1913 law, and the next one represents today's law. Big difference! In 1913 only 1% of the population paid income tax.
To sum it all up, comment in your notes on the changes in tax rate then and now. Use these questions to guide your answers:
What are the changes?
What stayed the same?
What do you predict will happen to the tax rate in the future?
Using what you have learned about Wilson's economic reforms and their impact on the American economy, complete the timeline by dragging the event to the correct date.