The document discusses the essential and nonessential characteristics of income taxation as outlined in the Sixteenth Amendment, ratified in 1913. It specifies that all wage earners are subject to income tax on various sources of income, including personal income and business profits. Additionally, it highlights examples of income while noting that wealth alone does not equate to taxable income.

1. Essential Characteristics Nonessential Characteristics
 Applies to all wage earners
 People with lots of wealth
 Ratified in 1913 were the only ones subject to
pay taxes at first.
 Congress regulates this tax
Concept/Vocabulary Word
Sixteenth Amendment:
Congress shall have the power to lay and collect taxes on incomes,
from whatever source derived, without apportionment among the
several States, and without regard to any census or enumeration
 Money taken from
paychecks
 Store-bought items
 Personal Income
 Money from selling
 Companies/ Businesses your home
 Social Security/ Medicare  Life Insurance
 Self- Employment
Examples Non-Examples