Final answer:
The first personal income tax was enacted in 1861 to fund the Civil War. It was revised and implemented in 1862 through the Internal Revenue Act, and the tax collection system was established. The federal income tax was made a permanent institution in 1913 with the passage of the 16th Amendment.
Step-by-step explanation:
The first personal income tax was enacted in 1861 to fund the Civil War. The United States government relied on taxes to finance a little over 16 percent of the war's costs. In 1862, Congress approved the Internal Revenue Act, which revised the income tax and implemented excise taxes.
This act also created the Bureau of Internal Revenue to collect taxes. The government did not make these taxes permanent, but in 1913, the 16th Amendment was passed, authorizing a federal income tax.