I. BRIEF HISTORY OF THE FEDERAL INCOME TAX LAW. Aug. 5, 1909. The Congress enacted the Corporation Excise Tax Law which levied a tax of one per cent. on corporate net income for each calendar year, allowing an exemption of five thousand dollars. Feb. 25, 1913. The Sixteenth Amendment to the Constitution of the United States was ratified by the States authorizing The Congress to levy taxes on the annual incomes of individuals. Oct. 3, 1913. The Congress enacted the Federal Income Tax Law levying a tax of one per cent. on annual net income of individuals and corporations with a sur-tax applicable to individual incomes in excess of twenty thousand dollars and omitting the five thousand dollar exemption allowed corporations. Jan. 24, 1916. The Supreme Court of the United States declared the Federal Income Tax Law of 1913 to be constitutional. Sept. 8, 1916. The Congress enacted the present Revised Federal Income Tax Law, increasing the normal tax of individuals to two per cent. with a graduated sur-tax on incomes in excess of twenty thousand dollars and increasing the corporation tax to two per cent. |