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The Income Tax. But the US Supreme Court soon ruled that the Income Tax was unconstitutional. The Court pointed out that the US Constitution prohibits the Federal government from directly taxing the people. But with the Civil War won by the north, the power of the Federal government was vastly increased and continues to grow to this day. Fifty years after the war the 16th Amendment to the Constitution was passed, giving the Federal government the power to directly tax the people. This was done during the Progressive era. Progressives wanted to use the power of government to make peoples lives "better", at least as they saw better. So they needed money, and this was the only way to get enough, so the Income Tax came back.
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