How did Wilson compensate for the reduced government income resulting from his lowering of tariffs?
A. cutting government expenses
B. creating an income tax
C. taxing businesses
D. charging federal interest on loans
The Wilson-Gorman Tariff of 1894 slightly reduced the United States tariff rates from the numbers set in the 1890 Tariff Act. [ The United States Revenue Act of 1913 re-imposed the federal income tax following the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, and is how Wilson compensated for reduced government income! ]