Wilson-Gorman Tariff Act of 1894 attempts reduction of rates on imported goods and introduces a federal income tax. The income tax is struck down by the Supreme Court until it was re introduced after the passage of the 16th Amendment in 1913, reinforcing tariffs role as major revenue in early America.
Significance
- Reduced tariffs on imported goods, reflecting a shift towards lower tariffs
- Introduced the concept of Income taxes to offset lower tariff revenue
- Contributed to the debate on protectionism vs. free trade, impacting economic policy and government revenue sources.
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