Why Did the Wilson Administration Impose a Graduated Income Tax

question 61

Multiple Choice

Why did the Wilson administration impose a graduated income tax in 1913?

• A) Correctly predicting the coming of World War I, Wilson hoped to bolster the federal budget for defense.
• B) Having imposed a ban on liquor sales, Wilson had to find a way to compensate for the lost excise tax.
• C) Wilson was trying to fulfill his campaign promise of "soaking the rich."
• D) The substantial reduction of duties on imports required Wilson to make up for lost revenue.

---

Definitions:

Livestock

Domesticated animals raised in an agricultural setting to produce labor and commodities such as meat, eggs, milk, fur, leather, and wool.

Inventory

Consists of the goods and materials held by a business for the purpose of resale or production.

Consumer Good

A product intended for personal use or consumption by the general public.

Personal Use

Personal use refers to the use of something primarily for one's personal needs, benefits, or purposes rather than for business or professional matters.