The Birth of Federal Income Tax

America was once a land without a federal income tax. Before 1913, you didn't have

to worry about the IRS or an April deadline. So how did the government make money?

Mostly from tariffs, which were taxes on imported goods. This meant regular people paid more

through higher prices, while the super-wealthy paid very little in comparison. Public anger was

growing. The government had tried an income tax before. First,

during the Civil War to fund the army, but that went away. Then,

in 1894, they passed a tax that only hit the richest 1% of Americans. But the Supreme

Court struck it down, calling it unconstitutional. It seemed like taxing the rich was impossible.