The Sixteenth Amendment to the United States Constitution signifies a major shift in the federal government's power regarding taxation. The amendment was proposed in response to the growing financial needs of the federal government in the late 19th and early 20th centuries, particularly as the nation faced increasing costs associated with new social programs and infrastructure needs. Prior to its ratification, major sources of federal revenue mainly included tariffs on imports and excise taxes, which placed heavier burdens on consumers and disproportionately affected lower-income households. Supporters of the amendment, including politicians and reformers, believed that a graduated income tax—where higher earners would pay a larger percentage—would allow for a fairer method of taxation that could address wealth inequality.The process to amend the Constitution began with the proposal by Congress after widespread discussions and advocacy for a tax reform. The amendment was ratified by the requisite number of states, showcasing a significant shift in public opinion on taxation and the role of the federal government. Upon ratification, the income tax allowed the federal government to collect revenue directly from individual incomes, effectively changing the landscape of taxation in America. This new power enabled the government to take a more active role in economic regulation and social welfare during the progressive era.Over time, the Sixteenth Amendment laid the foundation for the modern American tax system. The Internal Revenue Service (IRS) was established to administer and enforce federal tax laws, transforming how citizens interacted with their government financially. This radical change has implications for fiscal policy and the government’s ability to stimulate economic growth, manage public services, and respond to crises through tax revenue.