Internal Revenue Service
On February 3, 1913, the Sixteenth Amendment to the United States Constitution was ratified. Free of the critical apportionment issue, it allowed Congress to impose an income tax. The Bureau of the IRS was charged with collecting income taxes. Personal income tax was 1% on income above $3,000. Incomes over $5,000 were subject to an additional 6% tax. Income taxes were as high as 77% in 1918 to help finance World War I. In 1929 they dropped to a high of 24% but rose again during the Great Depression in 1929. During World War II withholding and quarterly taxes were introduced.