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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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