Tax Reform Act of 1986, the most-extensive review and overhaul of the Internal Revenue Code by the U.S. Congress since the inception of the income tax in 1913 (the Sixteenth Amendment). Its purpose was to simplify the tax code, broaden the tax base, and eliminate many tax shelters and preferences.
When was the 16th Amendment proposed?
1913
Passed by Congress on July 2, 1909, and ratified February 3, 1913, the 16th amendment established Congress’s right to impose a Federal income tax.
What was the role of the Sixteenth Amendment?
William E. Forbath, Lloyd M. Bentsen Chair in Law and Associate Dean for Research, University of Texas School of Law. The Sixteenth Amendment, ratified in 1913, played a central role in building up the powerful American federal government of the twentieth century by making it possible to enact a modern, nationwide income tax.
Is there an apportioned tax under the Sixteenth Amendment?
And no apportioned direct tax has been enacted since 1861. The Sixteenth Amendment is often said to have given Congress the power to tax income, but Congress always had that power. The question answered by the Amendment was whether an income tax is a direct tax that has to be apportioned.
Are there any problems with the Sixteenth Amendment?
There are a few problems with the sixteenth amendment. For one their might be a state with very wealthy people or a large state with a large population. They might put in more money and end up with the equal resources as the states with a small population. That is certainly an issue.
Why was it important to amend the Constitution?
Amending the Constitution was also risky, however. The amendment process is slow, and if the effort failed, an income tax would be delayed indefinitely. It became clear that, if only for political reasons, an unapportioned income tax was impossible without an amendment.
