Abstract On February 23, 1913, the U.S. Secretary of State certified to the U.S. Congress that the sixteenth amendment to the Constitution, by virtue of which the Federal government was empowered to tax incomes without apportionment, had been adopted by two-thirds majority in several states. It has been reported that during the discussion preceding the adoption, objection was made on the ground that the taxing of income was equivalent to laying a tax on ambition. Despite this and all other objections, the amendment became a part of the U.S. law. The law had the most devastating effect on people engaged in the teaching of accounting. In this respect, first results of income tax laws as related to the field of accountancy were to bring home to taxpayers the utter necessity for accurate financial records and as a corollary of that necessity to augment to a remarkable degree the body of trained and competent men engaged in accounting pursuits. These laws which have made the nation take account of itself have in turn been compelled to take cognizance of principles of accounting.
Joseph Moyer (Thu,) studied this question.