What legislation did Wilson enact to promote a progressive income tax?

• A. Underwood Tariff Act
• B. Revenue Act
• C. Tax Reduction Act
• D. Economic Recovery Act

Answer: (A)

The Underwood Tariff Act, enacted in 1913, aimed to reduce tariffs and included provisions for a progressive income tax. This legislation was significant in promoting economic fairness by taxing higher incomes at higher rates while reducing reliance on tariff revenues. It marked a change in federal revenue sources and was part of President Woodrow Wilson's broader Progressive Era reforms. The act represented a shift toward a tax structure designed to alleviate the financial burden on the working and middle classes while ensuring that wealthier individuals contributed a fairer share to support government functions. This legislation laid the foundation for the modern tax system in the United States.