Why Did the Wilson Administration Impose a Graduated Income Tax

question 120

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) Wilson had promised Republicans a graduated income tax only, if in return, they supported his declaration of war.
• E) The substantial reduction of duties on imports required Wilson to make up for lost revenue.

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Definitions:

Repurchase

The act of buying back goods or securities that were previously sold, often referring to a company buying back its own shares.

Equity Firm

A company that invests its clients' funds in businesses, typically acquiring significant control or full ownership.

Borrowing

The process of obtaining funds from lenders with a promise to repay, generally with interest, at a future date.

Repurchase

The act of buying back shares of its own stock by a company, reducing the number of outstanding shares in the market.