Wilson–Gorman Tariff Act
It was the first income tax since the Civil War. Unlike the wartime tax, there had been pressure in Congress for a direct tax on income. Between 1874 and 1893, nearly 70 income tax bills had been introduced by Democrats in Congress. Generating revenue was not the primary goal of a direct income tax. The main issue was fairness. The bulk of federal revenue was from tariffs that all Americans had to pay when they bought imported products. But giant businesses like railroads, steel manufacturers, sugar companies were making large profits that were not being taxed. Securities, bonds and savings were also not being taxed. So an income tax was a fair remedy for this situation.