From the article on taxation.
“Ability to Pay” stressed
Behind this great growth of the income tax as a revenue source the impetus generally has been the theory of congressional and other governmental leaders that it is the best application of the theory of taxation on the basis of “ability to pay.”
While some critics hold that there is no more equity behind this theory of taxation than behind the ancient one described as “plucking the goose where the feathers are thickest,” yet it has been so generally accepted by legislators that no more defense of it seems necessary to them than repetition of the ‘the ability to pay” slogan. The contrary theory that taxes should be collected on the basis of the benefits of government received by the taxpayers is scarcely ever heard.
Government experts generally agree that the social effect of the income levy has been a leveling down to some extent of disparity of individual incomes, but the emphasis is all placed on the other theory, - plucking the goose where the feathers are thickest, and thus getting as much revenue as possible. And this, by and large, is of the the basis of most Federal taxation.
I am looking forward to seeing how that little wrinkle came about. Did it happen in 1942? I once heard that a young Milton Friedman had a hand in it. At that point in the war the folks on the home front were unlikely to squawk to loud about a sacrifice that would be seen as helping the war effort. I guess Ways and Means just forgot to terminate it when the war ended.