What legislation did Wilson enact to promote a progressive income tax?

What legislation did Wilson enact to promote a progressive income tax?

• A. Underwood Tariff Act
• B. Revenue Act
• C. Tax Reduction Act
• D. Economic Recovery Act

Answer: (A)

The Underwood Tariff Act, enacted in 1913, aimed to reduce tariffs and included provisions for a progressive income tax. This legislation was significant in promoting economic fairness by taxing higher incomes at higher rates while reducing reliance on tariff revenues. It marked a change in federal revenue sources and was part of President Woodrow Wilson's broader Progressive Era reforms. The act represented a shift toward a tax structure designed to alleviate the financial burden on the working and middle classes while ensuring that wealthier individuals contributed a fairer share to support government functions. This legislation laid the foundation for the modern tax system in the United States.

The Underwood Tariff Act, enacted in 1913, aimed to reduce tariffs and included provisions for a progressive income tax. This legislation was significant in promoting economic fairness by taxing higher incomes at higher rates while reducing reliance on tariff revenues. It marked a change in federal revenue sources and was part of President Woodrow Wilson's broader Progressive Era reforms. The act represented a shift toward a tax structure designed to alleviate the financial burden on the working and middle classes while ensuring that wealthier individuals contributed a fairer share to support government functions. This legislation laid the foundation for the modern tax system in the United States.