It was pointed out in Application 6.1, "A Chronology of Federal Income Tax Policies" that:

Question

Quizplus · Accepted Answer

All the statements are correct regarding the history of federal income tax policies in the United States. Federal income tax rates indeed increased during major conflicts such as World War I, World War II, and the Vietnam War to support war efforts. The individual income tax rate did reach 94% on income over $200,000 during World War II. Additionally, the practice of paying taxes on income when it was earned, rather than in the following year, began in the 1940s.

It Was Pointed Out in Application 6