When did the federal income tax become permanent?

The Sixteenth Amendment to the Constitution, adopted in 1913, granted power to Congress to levy income taxes without apportionment among the states. Previously, states paid a portion of national taxes based on population. The maximum income tax in 1913 was 7 percent on personal net income over $500,000. However, increasing defense expenditures after the United States entered World War I led to a series of new tax laws designed to meet about one-third of the total war costs. Congress passed and President Woodrow Wilson approved four major revenue acts between 1914 and 1919 that increased the rates of personal income taxes. Among other taxes introduced during wartime were a special tax on munitions manufacturers, an estate tax, an excess profits tax, a war profits tax, transportation taxes, and a wide variety of new excise taxes on goods and services.

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