Revenue Act of 1913

The United States Revenue Act of 1913 also known as the Tariff Act, Underwood Tariff, Underwood Act, Underwood Tariff Act, or Underwood-Simmons Act (ch. 16, 38 Stat. 114, October 3, 1913), re-imposed the federal income tax following the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich Tariff Act of 1909. It was signed into law by President Woodrow Wilson on October 3, 1913, and was sponsored by Alabama Representative Oscar Underwood.

President Woodrow Wilson summoned a special session of Congress in April 1913. His immediate objective was to confront the perennial tariff question, and he brought special attention to the matter by deciding to appear in person before Congress to make his appeal. He was the first president since John Adams to do so.

The joint session was a spectacular event. A huge crowd gathered and every seat in the House chamber was taken. Newspaper coverage was intense. Wilson spoke only briefly, but made it clear that tariff reform was needed, and that he would not be a party to a repeat of the embarrassment of the thwarted reform of 1894. The burden was clearly on Democratic shoulders because they controlled both houses of Congress for the first time in 18 years.

Oscar W. Underwood of Alabama guided a reform measure through the House, but his counterpart in the Senate, F.M. Simmons of North Carolina, reverted to form and allowed numerous increases in rates to be added. Wilson, unlike many of his predecessors, took the offensive. He went to the Capitol and twisted the arms of backsliding Democrats; he also warned the public of the invasion of Washington then underway by scores of lobbyists. The president was successful with generating a public reaction. Angry constituents wrote their congressmen and demanded tariff reform.

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