1. Xiomara Hernandez Tamayra Brown Emily Latorre

2.  The Federal Reserve Act was passed and signed in 1913  The Act was intended to prevent a national financial crisis  It also relocated supervision of the banking system from private sector to federal government

3.  National Banking Act – 1863-1864  Created a system for privately owned banks because they were chartered and regulated by the federal government  Federal spending increased from 1939 $8.9illion a year – $95.2billion in 1945

4.  Proposed in congress on July 12,1909  Ratified in February 3, 1913  The amendment gave government power to tax directly rather than through tariff  States that Income may be taxed without regard to population  Congress began eyeing Income tax to collect funds for government use

5.  Income tax grew in rural states.  Farm workers got low prices for their products but they still have to pay high prices for manufacturing good  If you made income over $4,000 you get 2% tax  If you made income over $800 you get 3% tax

6.  Tax was almost immediately struck down by a 5-4 decision in the supreme court  Less than 1% of the population paid income taxes at the rate of 1% of net income  1894 congress enacted flat rate federal income tax

7.  Caputo, Richard K. "U.S. Federal Income Tax Is Authorized." Great Events from History: The Twentieth Century, 1901-1940. Ed. F. Gorman Robert. 6 vols. Salem Press, 2007. Salem History Web. 03 Oct. 2014  "Federal Reserve Act." UXL Encyclopedia of U.S. History. Sonia Benson, Daniel E. Brannen, Jr., and Rebecca Valentine. Vol. 3. Detroit: UXL, 2009. 541-542. U.S. History in Context. Web. 3 Oct. 2014.  Sixteenth Amendment." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, 1999. U.S. History in Context. Web. 3 Oct. 2014