Final answer:
The 1913 income tax was a part of the U.S. federal government's approach to implementing a progressive taxation system, which was only applicable to the wealthiest Americans upon its initial introduction. The Sixteenth Amendment enabled Congress to levy this tax, and it set a precedent for future tax policies and the expansion of the taxpayer base.
Step-by-step explanation:
The 1913 income tax was targeted at high-income taxpayers, particularly affecting the wealthiest 5 percent of households. Following the ratification of the Sixteenth Amendment in February 1913, Congress imposed an annual tax on individuals earning more than $4,000 per year, which exceeded the earnings of most workers at the time. This tax system introduced a progressive tax structure, with rates ranging from 1 percent to a maximum of 7 percent.
The concept of progressive taxation, which taxes those with higher incomes at higher rates, has been seen as fair by many and has remained a fundamental principle of U.S. tax policy. Historically, tax revenue was also used to finance significant federal expenses like the Civil War, as seen with the Internal Revenue Act of 1862. The Revenue Act of 1942 greatly expanded the number of Americans who had to pay income tax by lowering the exemption limit and introducing tax withholding from paychecks.