Taft and Wilson 5

Roosevelt was very popular as the 1908 campaign approached, but he chose not to seek a third term, respecting the tradition against it. He backed William Howard Taft, his former governor of the Philippines and secretary of war, who won against Bryan. Taft continued anti-trust actions but was less selective than Roosevelt. He strengthened the Interstate Commerce Commission, created a postal savings bank and a parcel post system, expanded the civil service, and supported two constitutional amendments in 1913. The 16th Amendment allowed a federal income tax, while the 17th mandated direct election of senators. However, Taft also accepted a new tariff with higher rates and resisted Arizona's admission to the Union due to its progressive constitution. His approach created divisions in the Republican Party, leading to Democratic control of Congress.

In 1912, Woodrow Wilson, a Democrat and progressive, defeated Taft and Roosevelt, who had formed a new Progressive Party. Wilson’s first term focused on tariff reform and banking system reorganization. The Underwood Tariff aimed to lower living costs and established a modest income tax. The Federal Reserve Act of 1913 restructured the banking system. Wilson's administration also tackled trust regulation with the Federal Trade Commission and the Clayton Antitrust Act, and implemented workers' protections. These achievements positioned Wilson as a significant progressive reformer, although his wartime presidency later impacted his domestic reputation.