1. Define the following terms used in the article:

• tax
• 16th Amendment
• federal income tax
• tariff
• impoverished
• re-instituted
• apportioned
• direct taxes
• indirect taxes

2. a) When was the first federal income tax adopted in the U.S.?
b) What percentage rate did people have to pay on their annual income at that time?
c) How did it change the following year?

3. Why did Congress allow the first federal income tax to expire?

4. a) Why were federal income taxes re-instituted in 1894?
b) On what grounds was the law overturned a year later? Be specific.

5. a) Write out the text of the 16th Amendment.
b) How many states must ratify a proposed amendment for it to become part of the Constitution?

6. Ask a parent what the tax rate is for your family.

7. Ask a parent if he/she supports a federal income tax, and if so, at what rate should people be taxed? Flat tax, sales tax only, the current system, impose higher taxes on "the rich" (and if so, what yearly income makes a person rich)?