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. The amendment was passed to remove the ‘direct tax dilemma’ related to Article I, Section 8 of the Constitution. A direct tax is a tax paid directly by an individual or organization to the entity that levied the tax, such as the Internal Revenue Service (IRS). "Amendments to the Constitution: A Brief Legislative History," Pages 43-44. A tax bracket is the rate at which an individual is taxed. Other taxes, such as taxes on houses or other property are considered “direct” taxes by the Constitution and would have to be divided back among the states. 1862," Page 473. The 16th amendment is an important amendment that allows the federal (United States) government to levy (collect) an income tax from all Americans. The amendment supersedes Article I, §3, Clauses 1 and 2 of the Constitution, under which senators were elected by state legislatures. Taxation refers to the act of levying or imposing a tax by a taxing authority. Teach the Constitution in your classroom with nonpartisan resources including videos, lesson plans, podcasts, and more. 16. Accessed Jan. 25, 2020. 16th Amendment Income Tax. The Sixteenth Amendment to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. Get the National Constitution Center’s weekly roundup of constitutional news and debate. Investopedia requires writers to use primary sources to support their work. Ch. U.S. Senate. 1913," Page 166. The Seventeenth Amendment to the United States Constitution established the popular election of United States senators by the people of the states. The Tax Lawyer. The 16th Amendment to the U.S. Constitution was ratified in 1913 and allows Congress to levy a tax on income from any source. Accessed Jan. 25, 2020. "Knowlton v. Moore, 178 U.S. 41 (1900)," Page 81. ", In Pollock, the Supreme Court ruled that this description applied to income from the plaintiff's 10 shares of the Farmers' Loan & Trust Co., and by extension to all interest, dividends, and rents derived from the property. Following this lead, Congress wrote the 16th amendment and after agreeing on the rules of the amendment about income tax, sent to the states to be voted on. 16th Amendment Primary tabs. Sixteenth Amendment To Twenty-Seventh Amendment, Regents of the University of California v. Bakke, Texas Girl Sues Parents Trying To Force Abortion. (The Court did not rule that income from labor was a direct tax, so that could, in theory, have been subject to federal, unapportioned income taxes.) Accessed Jan. 25, 2020. The 16th Amendment to the U.S. Constitution was ratified in 1913 and allows Congress to levy a tax on income from any source. Bulletin, Volume 13," Page 4. "Amendments to the Constitution: A Brief Legislative History," Page 41. 110-112, 116, 119. 17th amendment Passed in 1913, this amendment to the Constitution calls for the direct election of senators by the voters instead of their election by state legislatures.