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An Overview of the 16th Amendment

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What is the 16th Amendment?“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”The16th Amendment DefinedDate ProposedThe 16th Amendment was proposed on July 12th, 1909Date PassedThe 16th Amendment was passed on February 3rd, 1913President of the United StatesWilliam H. Taft was the President of the United States during the ratification of the 16th AmendmentStipulations of the 16th AmendmentThe United States Constitution (Article 1, Section 8) prohibited the implementation of unapportioned and direct taxation; as a result, the levy of income tax – once permitted to be regulated on a state-level prior to the ratification of the 16th Amendment – was placed under the jurisdiction of the Federal GovernmentThe 16th Amendmentestablished the latent differencesexisting between direct taxes and indirect taxes; the amendment states that certain income tax be considered as an excise, indirect tax. However, taxation with regard to property rental and interest were considered to be direct taxes; as a result, such taxes were moved under the jurisdiction of the Federal GovernmentThe 16th Amendment substantiates that the classification of a tax as ‘direct’ or ‘indirect’ is irrelevant; this amendment states that a Federal income tax can be collected without regard to an individual state’s respective population or gross amount of income16th Amendment FactsA Direct Tax is a tax that is collected directly from a governmental bodyA flat tax is consistent in its rate; it does not fluctuateThe Revenue Act of 1861, which was passed during the Civil War in order to garner funding for combat, mandated that any or all income exceeding $800 would be subject to a %3 flat taxThe Wilson-Gorman Tariff Act, which was passed in 1894, mandated that any or all income exceeding $4,000 would be liable to undergo a 2% taxStates Ratifying the 16th Amendment1. Alabama2. Arizona3. Arkansas4. California5. Colorado6. Delaware7. Georgia8. Idaho9. Illinois10. Indiana11. Iowa12. Kansas13. Kentucky14. Louisiana15. Maine16. Maryland17. Massachusetts18. Michigan19. Minnesota20. Mississippi21. Missouri22. Montana23. Nebraska24. Nevada25. New Hampshire26. New Jersey27. New Mexico28. New York29. North Carolina30. North Dakota31. Ohio32. Oklahoma33. Oregon34. South Carolina35. South Dakota36. Tennessee37. Texas38. Vermont39. Washington40. West Virginia41. Wisconsin42. WyomingStates Not Participatory in the Ratification of the 16th Amendment1. Connecticut2. Florida3. Pennsylvania4. Rhode Island5. Utah6. VirginiaCourt Cases Associated with the 16th AmendmentPollock v. Farmers’ Loan & Trust Co. (1895) – a court case involving Massachusetts resident Charles Pollock, who argued that while state-regulated income taxes were considered to be direct taxes, they were not subject to apportionment; as a result, Pollock argued that unapportioned, state-regulated direct taxes were in the direct violation of the Constitution – the Supreme Court ruled in favor of Pollock, which resulted in the proposal of the 16th AmendmentSubsequent to the Supreme Court ruling with regard to Charles Pollock, the 16th Amendment stood to clarify the distinction between presumed indirect and direct taxes.
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  • 16th Amendment

    What is the 16th Amendment?

    “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”


    The16th Amendment Defined

    Date Proposed

    The 16th Amendment was proposed on July 12th, 1909

    Date Passed

    The 16th Amendment was passed on February 3rd, 1913

    President of the United States

    William H. Taft was the President of the United States during the ratification of the 16th Amendment

    Stipulations of the 16th Amendment

    The United States Constitution (Article 1, Section 8) prohibited the implementation of unapportioned and direct taxation; as a result, the levy of income tax – once permitted to be regulated on a state-level prior to the ratification of the 16th Amendment – was placed under the jurisdiction of the Federal Government

    The 16th Amendmentestablished the latent differencesexisting between direct taxes and indirect taxes; the amendment states that certain income tax be considered as an excise, indirect tax. However, taxation with regard to property rental and interest were considered to be direct taxes; as a result, such taxes were moved under the jurisdiction of the Federal Government

    The 16th Amendment substantiates that the classification of a tax as ‘direct’ or ‘indirect’ is irrelevant; this amendment states that a Federal income tax can be collected without regard to an individual state’s respective population or gross amount of income

    16th Amendment Facts

    A Direct Tax is a tax that is collected directly from a governmental body

    A flat tax is consistent in its rate; it does not fluctuate

    The Revenue Act of 1861, which was passed during the Civil War in order to garner funding for combat, mandated that any or all income exceeding $800 would be subject to a %3 flat tax

    The Wilson-Gorman Tariff Act, which was passed in 1894, mandated that any or all income exceeding $4,000 would be liable to undergo a 2% tax

    States Ratifying the 16th Amendment

    1. Alabama

    2. Arizona

    3. Arkansas

    4. California

    5. Colorado

    6. Delaware

    7. Georgia

    8. Idaho

    9. Illinois

    10. Indiana

    11. Iowa

    12. Kansas

    13. Kentucky

    14. Louisiana

    15. Maine

    16. Maryland

    17. Massachusetts

    18. Michigan

    19. Minnesota

    20. Mississippi

    21. Missouri

    22. Montana

    23. Nebraska

    24. Nevada

    25. New Hampshire

    26. New Jersey

    27. New Mexico

    28. New York

    29. North Carolina

    30. North Dakota

    31. Ohio

    32. Oklahoma

    33. Oregon

    34. South Carolina

    35. South Dakota

    36. Tennessee

    37. Texas

    38. Vermont

    39. Washington

    40. West Virginia

    41. Wisconsin

    42. Wyoming

    States Not Participatory in the Ratification of the 16th Amendment

    1. Connecticut

    2. Florida

    3. Pennsylvania

    4. Rhode Island

    5. Utah

    6. Virginia

    Court Cases Associated with the 16th Amendment

    Pollock v. Farmers’ Loan & Trust Co. (1895) – a court case involving Massachusetts resident Charles Pollock, who argued that while state-regulated income taxes were considered to be direct taxes, they were not subject to apportionment; as a result, Pollock argued that unapportioned, state-regulated direct taxes were in the direct violation of the Constitution – the Supreme Court ruled in favor of Pollock, which resulted in the proposal of the 16th Amendment

    Subsequent to the Supreme Court ruling with regard to Charles Pollock, the 16th Amendment stood to clarify the distinction between presumed indirect and direct taxes.

    NEXT: Seventeenth Amendment

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