One hundred years ago yesterday, Feb. 3, 1913, the 16th Amendment was ratified instituting the federal income tax with progressive rates.
What is interesting is this little gem from that article:
The battle to take money earned by Americans had been long, beginning at the outset of the Civil War. President Abraham Lincoln needed to raise cash to fight the South, so Congress introduced the income tax as part of the Revenue Act of 1861. Incomes above $800 annually ($20,370 in 2012 dollars) were taxed at 3 percent — yes, America’s first income tax was a flat tax.
If we’re not going to abolish the income tax, we should at least go to a flat tax with no or as few loopholes as possible.