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The 16th amendment is all about the congress having power to levy and collect taxes on income. This was passed July 2, 1909 and ratified February 3, 1913. In 1816 the federal requirements of the civil war promoted the first American income tax. Industrial and financial markets of the eastern United States increased and prospered after the civil war. Throughout the 1860s and 1870s, the farmers arranged organizations called the grande, the greenback party, and the anti nail farmers alliance. These groups prevented many reforms .
Congress places a flat 3% on all incomes over 4,000. The amendment was ratified by one state legislature after another. By the Secretary of State, Philander C. Knox, with a certification, the 16th amendment was in effect February 25, 1913

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