At one time, the US government collected taxes only through sales taxes and imports. The Amendment to the Constitution allowed the federal government to collect taxes on sixteenth income.
Step-by-step explanation:
The Sixteenth Amendment of the U.S Constitution permits Congress to give emphasis on income tax without allocating it among the states on the basis of population. Maximum federal revenue came from tariffs rather than taxes,though Congress imposed excise duties on it.
The first federal income tax was introduced by the Revenue Act of 1861, again it was revoked in 1872. All federal income taxes were unconstitutional. Supreme court did not hold it. It held income taxes on rent, dividends and interests. These are all direct taxes and divided among states on the basis of population.