Question

The massive increase in total income tax revenue in this 12-year period was primarily because

A)the Progressives were able to get the 16th Amendment ratified.

B)tax rates were increased to help pay for the expenses incurred by World
War I

C)the 18th Amendment required additional tax revenue to be created for the
federal government

D)the addition of women to the electorate meant that tax increases were
approved by referendum

Answer 1

The significant increase in income tax revenue was chiefly because tax rates were increased to help fund expenses related to World War I, following the establishment of the federal income tax system with the 16th Amendment.

Step-by-step explanation:

The massive increase in total income tax revenue during the 12-year period specified was primarily due to tax rates being increased to help pay for the expenses incurred by World War I. Although the ratification of the 16th Amendment paved the way for a federal income tax, which replaced tariffs as a main source of revenue and introduced a progressive tax system, it was the financial demands of World War I that led to the significant increase in tax revenue. This was necessary to finance the war without relying solely on borrowing, as excessive borrowing could have detrimental economic effects.