Income Tax Amendment Law and Legal Definition
Income tax amendment is an amendment to the U.S. Constitution that empowers Congress to levy an income tax. The provision for the collection of income tax was inserted in the constitution through its sixteenth amendment. The income tax so collected by Congress need not be distributed to the states. This amendment was ratified in 1913. The ratification of this amendment was as the the federal government’s response to the decision of Pollock v. Farmers' Loan & Trust Co., [157 U.S. 429 (U.S. 1895)]. In this case the court held that income taxes on rents, dividends, and interest are direct taxes.