Tag Archives: Congress

The 16th Amendment was passed by the 61st Congress on July 12, 1909, and ratified on February 3, 1913. This Amendment overruled Pollock v. Farmers’ Loan & Trust Co. case in 1895 which limited the authorization of the Congress to collect an income tax. It states that

” 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.”

Before the ratification of this Amendment, the Congress could not collect a direct tax. The Congress was concerning about allowing wealthy people to have too much money because it could increase a gap between rich and poor. This Amendment became the base of income tax we pay today and created the distribution of the wealth.

Image from The National Archives: http://www.ourdocuments.gov/doc.php?doc=57