The Sixteenth Amendment was ratified by the requisite number of states on February 3, 1913, and effectively overruled the Supreme Court's ruling in
Pollock.
What an interesting year that was.
So which came first the 16th Amendment or the Federal Reserve Bank?
- The Sixteenth Amendment to the U.S. Constitution, which gave Congress the power to levy a federal income tax, was ratified on February 3, 1913. It was passed by Congress on July 2, 1909, but its ratification came more than a year before the Federal Reserve Act.
- The Federal Reserve Act was passed by Congress on December 23, 1913, and signed into law by President Woodrow Wilson on the same day. This law created the Federal Reserve System, the central banking system of the United States, with twelve regional Federal Reserve Banks and a Board of Governors.
In 1909, during the debate over the
Payne–Aldrich Tariff Act, Congress proposed the Sixteenth Amendment to the states. Though conservative Republican leaders had initially expected that the amendment would not be ratified, a coalition of Democrats,
progressive Republicans, and other groups ensured that the necessary number of states ratified the amendment. Shortly after the amendment was ratified, Congress imposed a federal income tax with the
Revenue Act of 1913. The Supreme Court upheld that income tax in the 1916 case of
Brushaber v. Union Pacific Railroad Co., and the federal government has continued to levy an income tax since 1913.
Every freaking time.