A Level History - America - Practice Exam

The 16th Amendment establishes the federal income tax, which was ratified in 1913. This amendment granted Congress the authority to levy a tax on individuals' incomes without apportioning it among the states or basing it on the U.S. Census. The introduction of the income tax was significant as it allowed the federal government to generate revenue in a more consistent manner and was part of a broader Progressive Era reform aimed at increasing governmental capabilities to address social issues and fund public services. The establishment of a federal income tax helped to reduce reliance on tariffs and excise taxes, which disproportionately affected lower-income citizens. This amendment was pivotal in reshaping the structure of taxation in the United States and remains in effect today.