16th

The 16th amendment was ratified in 2013 and it allowed the federal government to tax income. Prior to that the federal government got income from tariffs and excise taxes (liquor and tobacco). The citizens felt that these taxes fell mostly upon the poor working people and they saw the progressive income tax as way to shift the burden to the rich. The result was that within four years the income tax replaced tariffs and excise taxes. The first tax brackets were one percent of income over $3,000 and up to 6% for higher earners. At that time the average family income was $700. Thus, the new income tax only effected 3% of the population.