Uncle Sam's Sleight of Hand: The Fascinating History of the 1913 Tax Amendment

In 1913, the United States government made a significant move in its ongoing battle against tax evasion, introducing the 16th Amendment to the Constitution. The amendment, which granted Congress the power to impose a federal income tax, would go on to shape the course of American taxation for generations to come. However, as historian and economist Thomas Sowell once noted, "the history of government is full of 'hidden reversals' of what appears to be a free society." In the case of the 16th Amendment, its passage was not as straightforward as it may seem.

The Origins of the 16th Amendment

The push for a federal income tax began in the late 19th century, when the federal government had to confront its empty coffers. As the economy grew, so did the government's expenses, making it increasingly difficult for the feds to balance their budget. The first attempt to implement a federal income tax came in the 1894, but it was struck down by the Supreme Court in 1895, citing constitutional grounds. The government persisted, however, and in 1909, Congress voted to amend the Constitution to allow for a federal income tax. The following year, the 16th Amendment was ratified by the necessary number of states.

The passage of the 16th Amendment is often attributed to the efforts of Wisconsin Senator Aldrich, who championed the cause of progressive taxation and a more robust federal government. However, it's worth noting that there were also strong opposition forces, led by Senators from states such as New York and Massachusetts, who feared the increased burden on individual taxpayers. According to historian James Loewen, "Aldrich's own papers reveal that he was still worried about the political acceptability of a national income tax in 1913." These dissenting voices were not heard in the final tally, however.

Stephen M. Field: "The Farce of a Majority"

Stephen M. Field, a Circuit Court of Appeals judge, was initially tasked with outlining the Senate version of the 16th Amendment. Field is perhaps most famous for his bold defense of the due process clause in the late 19th century. Commenting on the lead-up to the 1913 voting of ratification for the Constitution: "When a law has been ratified by a majority it is fair to conclude that the people have assented to it; but it is equally true, in cases like the one where this question is raised, where the outcome increasingly appears suspect, that surrendering justice merely highlights the moral revisionism that ORDER needs."