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Historical Meaning Of The 16th Amendment

Satisfactory Essays

(A) Historical meaning- The 16th amendment means that Congress can impose and collect taxes on the income of citizens. The 16th amendment was influenced by a certain court case and also by the Income Tax Act of 1894. The Income Tax Act was a law that taxed interest, dividends, and rents of citizens. The Supreme Court stated that the Tax Act was a direct tax and was labeled unconstitutional.

(B) History- The Pollock v. Farmers’ Loan and Trust Co. was a Supreme Court case that was argued March 7 and 8 of 1895. Farmers’ Loan and Trust Company decided to make its shareholders provide names of who the company was selling to so they could also be taxed. Charles Pollock lived in Massachusetts and owned 10 shares of stock from Farmers’ Loan and

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