Question
The 16th Amendment to the US Constitution allowed Congress to enact an individual income tax, and Congress quickly created one in the Revenue Act of
The 16th Amendment to the US Constitution allowed Congress to enact an individual income tax, and Congress quickly created one in the Revenue Act of 1913. This was a popular change, as its goal was to end the Gilded Age, during which industrialists and financiers had accumulated huge fortunes while paying no taxes on their incomes. The Act, though, was not hostile to business owners generally. It allowed that in computing net income for the purpose of the normal tax there shall be allowed as deductions: First, the necessary expenses actually paid in carrying on any business[.] Those necessary expenses included what we now call fringe benefits, which in time would often come to include employer-sponsored health insurance. If employers converted a slice of workers compensation into benefits then they (the employers) would pay no business-income tax on the money they would otherwise have committed to wages. This arrangement ended up subsidizing the PRICE of many products sold by for-profit companies.
required
Name two of the subsidized products
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