What was the Underwood-Simmons Act?


Quick Answer

The Underwood-Simmons act was a piece of legislation passed by Congress in 1913 intended to support the U.S. industrial sector by reducing tariffs on manufactured items and raw materials. It also mandated an income tax for the first time in U.S. history.

Continue Reading

Full Answer

The Underwood-Simmons Act was supported by President Woodrow Wilson, who believed the act would lead to an increase in the import of foreign materials and reduce their cost. The Underwood-Simmons act also introduced the first income tax in the United States as an attempt to recover the revenue that had been lost by lowering the tariffs on foreign imports.

Learn more about Taxes

Related Questions