Well 1861/62 saw the first Revenue Act to tax income. But a careful read shows it applied only to federal things, soldiers, officer pay, etc. Basically Congress taxing Congress' stuff. But yes, the introduction of FRNs allowed the banksters (in partnership with government) to apply federal taxation out to the rest of America. But it was a very slow, gradual process. Remember, the early FRNs were backed by metal, real money, and were probably considered placeholders for money, not money itself. Says right on them: "PAY TO THE BEARER ON DEMAND...TEN DOLLARS."
The layers of deception that have gone into achieving the Federal Income Tax are repugnant.
E.g. If you choose to use the Federal Reserve Notes for your income you are voluntarily (probably unwittingly) entering into a contract with the the legal entity known as the "Federal Government" (note this is a separate legal entity to the "United States of America"), to use the FR's private debt notes that are subject to private law, not public law, and are giving consent to the IRS to treat you as willing participant in the body of contract law surrounding taxation arising from the use of Federal Reserve private debt notes. Note, the debt is never extinguished in this system but merely passed onto the next holder of the notes and whilst you choose to use these notes your body becomes liable for any costs incurred in the volutary use of these notes (taxes, levies, fines, inflation, war costs, etc, etc).
Congress has had its part to play in this deception, since the structure was needed to get around the provisions for lawful money given by the Constitution. It is now an elaborate and sophisticated web of laws, contextual contracts and deception that the majority will never escape.
But it seems there maybe "Remedy" supplied in the Federal Reserve Act itself. You can opt out of the Federal Reserve system of private debt money and demand for your income "Redeemed in Lawful Money, Pursuant to 12 USC Â§ 411" when collecting your paycheck at a US bank .... and then things get interesting.http://savingtosuitorsclub.net/showthread.php?471-Redemption-of-Lawful-Money-at-US-Bank
So the US does not actually have a state monopoly issued currency but a duopoloy of currencies. The first, United States Notes and the other being the Federal Reserve System's private debt notes.