How Federal Income Tax Withholding Took Over Paychecks | ARCHIVE FILE 007

MONEY, BANKING & TAXES

S.B.

America did not go from no federal income tax to paycheck withholding overnight. This Archive File traces how the system developed through the Civil War, the Sixteenth Amendment, the first modern income tax in 1913, and the World War II changes that expanded the tax base and made withholding a permanent part of American paychecks.