Income tax in the United States peacetime income tax. The rate was 2% on income over $4000, which meant fewer than 10% of households would pay any. The purpose of the income tax was to make up for revenue that would be lost by tariff reductions. In 1895 the United States Supreme Court, in its ruling in "Pollock v. Farmers' Loan & Trust Co.," held a tax based on receipts from the use of property to be unconstitutional. The Court held that taxes on rents from real estate, on interest income from personal property and other income from personal property (which includes dividend income) were treated
The Cold War and the Income Tax it his business to study the state in theory and in practice. The person who is in the weakest position to attack the state is he who has largely ignored its potential for evil while strongly backing its expansion on humanitarian grounds and is only stirred to protest when he falls foul of it through his own negligence. That exactly describes Wilson's position. In his book he tried to evade his own inconsistencies by arguing that most of his income tax went on defence spending induced by Cold War paranoia. But then he had not paid his state income taxes