16th Amendment

Topics: United States, United States Senate, Taxation Pages: 3 (712 words) Published: October 16, 2011
16th Amendment- Status of Income Tax Clarified. Ratified 2/3/1913

What it is- 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.

Reason for ratification- In 1895, in the Supreme Court case of Pollock v Farmer's Loan and Trust (157 U.S. 429), the Court disallowed a federal tax on income from real property. The tax was designed to be an indirect tax, which would mean that states need not contribute portions of a whole relative to its census figures. The Court, however, ruled that the tax was a direct tax and subject to apportionment. This was the last in a series of conflicting court decisions dating back to the Civil War. Between 1895 and 1909, when the amendment was passed by Congress, the Court began to back down on its position, as it became clear not only to accountants but to everyone that the solvency of the nation was in jeopardy. In a series of cases, the definition of "direct tax" was modified, bent, twisted, and coaxed to allow more taxation efforts that approached an income tax.

More Information-Finally, with the ratification of the 16th Amendment, any doubt was removed. The text of the Amendment makes it clear that though the categories of direct and indirect taxation still exist, any determination that income tax is a direct tax will be irrelevant, because taxes on incomes, from salary or from real estate, are explicitly to be treated as indirect. The Congress passed the Amendment on July 12, 1909, and it was ratified on February 3, 1913 

17th Amendment- Senators Elected by Popular Vote. Ratified 4/8/1913

What it is- The Senate of the United States shall be composed of two Senators from each State, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each State shall have the qualifications requisite for electors of the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Gender Roles in the 16th Century
  • 16th Amendment: Income Tax Essay
  • Renaissance: Madrigal and 16th Century Essay
  • Economies of Cuba and Puerto Rico 16th
  • High Renaissance
  • Popular Protest in the 16th Century Could Pose a Dangerous Challenge to the Monarch and the State. How Far Is the Statement Accurate in...
  • Bill Of Rights And Amendments Essay
  • Mannerist Portraits of the 16th Century Essay

Become a StudyMode Member

Sign Up - It's Free
Spencer Neville | geneatique | Haiyoru! Nyaruani: Remember My Mr. Lovecraft