Intro to Fed Tax Income

Question 1

Federal income tax had its beginning with the ratification of which Amendment?

Answer 1

16th Amend to the US Constitution in 1913:

The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states and without regard to any census or enumeration

(Set stage ofr 1913 Income Tax Act)

Question 2

The success of our tax system is largely due to _________________.

Answer 2

the withholding system

where employers are required to withhold from their employees’ compensation a sum, determined by reference toa specifically formulated schedule, which approximates the federal income taxes an employee will owe