The Congress shall have power To lay and collect Taxes, Duties, Imposts and Excises [ . . . ] but all Duties, Imposts and Excises
shall be uniform throughout the United States [ . . . ]
Representatives and direct Taxes shall be apportioned among the several
States which may be included within this Union, according to their respective Numbers [ . . . . ]
No Capitation, or other direct,
Tax shall be laid, unless in proportion to the Census or Enumeration herein before directed to be taken.
1861: Revenue Act of 1861. Flat tax of 3% on annual income above $800.
1862: Replacement of 1861 act: Revenue Act
of 1862. It was a graduated tax of 3-5% on income above $600. With a specified a termination of income taxation in 1866.
1887: The
Socialist Labor Party advocated a graduated income tax.
1892: The Populist Party "demanded a graduated income tax" in its 1892
platform.
1894: The Democratic Party, led by William Jennings Bryan, advocated the income tax law passed in 1894
1894: Wilson-Gorman
Tariff Act attempted to impose a federal tax of 2% on incomes over $4,000. Derided as "un-Democratic, inquisitorial, and wrong in
principle." it was challenged in federal court.
1908 The Democratic Party proposed an
income tax in its 1908 platform.
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.
Graduated Income Tax
In his dissent to the Pollock decision, Justice Harlan stated:
When, therefore, this court adjudges, as it does now adjudge,
that Congress cannot impose a duty or tax upon personal property, or upon income arising either from rents of real estate or from
personal property, including invested personal property, bonds, stocks, and investments of all kinds, except by apportioning the sum
to be so raised among the States according to population, it practically decides that, without an amendment of the Constitution —
two-thirds of both Houses of Congress and three-fourths of the States concurring — such property and incomes can never be made to
contribute to the support of the national government.
The Congress reflected the concern of many elements of society that the wealthiest
Americans had consolidated too much economic power.