To compensate for the revenue that would be lost as a result of the new Underwood tariff,in 1913 the House of Representatives passed
A) an act permitting Wilson to request money from J.P.Morgan.
B) federal taxes on liquor and cigarettes.
C) the federal income tax.
D) the Federal Reserve Act of 1913.

Question

Quizplus · Accepted Answer

The federal income tax was introduced to make up for the revenue lost due to the new Underwood tariff. It was a progressive tax, meaning that individuals with higher incomes paid a higher percentage of their income in taxes.

To Compensate for the Revenue That Would Be Lost as a Result