when was income tax established
16th Amendment Forward: In 1913, with World War I looming, ratification of the 16th Amendment permanently established the income tax. The amendment gave Congress the authority to impose a tax on the income earned by both individuals and corporations. By 1918, government revenue generated from the income tax exceeded $1 billion for the first time, and topped $5 billion by 1920. The introduction of the mandatory withholding tax on employee wages in 1943 increased tax revenue to almost $45 billion by 1945.