Question

Why is the 16th Amendment significant?

Answer 1

It gave Congress the power to levy (collect) taxes based on a person's income.

Answer 2

The 16th Amendment to the United States Constitution states:

"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."

This was a significant change because it altered the way the government obtained most of its revenue. The change meant that instead of using tariffs as the main source of revenue, the government could rely on income taxes. The change was particularly accepted in the South and the West, where tariffs made life expensive.