Canada became a British possession
after the end of the Seven-Years war and the signing of Treaty of Paris in
1763. The French first ruled Canada after the European contact, which explains
why places like Montreal and Quebec have strong French heritage. The Seven-Years
War resulted in British victory over the French, and so the French have to hand
over the keys to Canada and settle for fishing rights off Newfoundland and the
islands of St. Pierre and Miquelon.
It was the "Sixteenth Amendment" that established a federal income tax in 1913, since this allows the federal government to impose taxes on incomes without approval from the states.