Final answer:
The 16th amendment was significant as it allowed Congress to impose a federal income tax without apportionment, which paved the way for a system of progressive taxation that initially targeted the wealthy. This was a departure from the reliance on tariffs and enabled a more equitable tax system across different income levels.
Step-by-step explanation:
The 16th amendment aimed to include "without apportionment" in order to enable the federal government to impose a federal income tax that could be applied universally to all forms of income. Previously, taxes had to be apportioned based on state population, making it difficult to tax individual incomes effectively. The amendment allows Congress to levy and collect taxes on incomes, from whatever source derived, without considering census data or individual state populations.
The passage of the 16th Amendment was significant in reshaping the federal revenue system. It transitioned the government away from relying primarily on tariffs and indirect taxes towards a more equitable system where those with higher earnings pay more in taxes, known as progressive taxation. This system of taxation was considered more fair and necessary for the growing expenses of the U.S. government, especially with the shift towards lower tariffs, which required new forms of revenue.
Federal income tax policies have since evolved, with changes in tax rates and exemptions affecting progressively more Americans. Initially affecting only the wealthy, the scope of federal income tax has expanded significantly, resulting in broader public awareness and participation.