Write a brief history of the federal income tax in the United ...

[BrownTown3]

Write a brief history of the federal income tax in the United States. Your description should reference dates and constitutional/political issues, if any.
 
  What will be an ideal response?

Question 2

In general, the quantity that maximizes revenue for the monopolist
 
  A) is greater than the quantity that maximizes profit.
  B) is less than the quantity that maximizes profit.
  C) is the same as the quantity that maximizes profit.
  D) is illegal according to anti-trust statutes.

[Qarqy]

Answer to Question 1

The United States first used an income tax in 1861 to help finance the Civil War. This tax was repealed in 1871 . In 1894, Congress attempted to institute another federal income tax but the Supreme Court ruled that the income tax was unconstitutional because it was a direct tax and was not distributed among the states according to population as the Constitution required. Popular support in favor of a larger federal government increased the incentive to institute a federal income tax, given its revenue raising capabilities. In 1913, a Constitutional amendment was passed to allow the creation of a federal income tax. Thus the current federal income tax system dates back to 1913, although the system has undergone tremendous changes during the twentieth century, including expansions during both World Wars and major tax reforms in 1964 and 1986.

Answer to Question 2

A