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The period between World War I and World War II saw many new tax laws being enacted, mainly for the purpose of raising funds for the war. Between the two wars, the plunging economy during the Great Depression led to the passage of the Social Security Act in 1935, also famously known as the ‘unemployment compensation tax’. This act had provisions for providing payments to workers who lost their jobs, public aid to the aged, the needy, the disabled, and to certain minors, to ensure social security for them.

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