First American Income Tax Created to Help Pay for Civil War

Timeline of History

History Topics

Revenue Act of 1861: In order to help pay for the Civil War, the U.S government creates the first American income tax. All income over $800 ($20,693 in 2011 dollars) is taxed at a flat rate of 3%.

Section 49 states:

"There shall be levied, collected, and paid, upon the annual income of every person residing in the United States, whether such income is derived from any kind of property, or from any profession, trade, employment, or vocation carried on in the United States or elsewhere, or from any other source whatever, if such annual income exceeds the sum of eight hundred dollars, a tax of three per centum on the amount of such excess of such income above eight hundred dollars... "
Powered by JReviews

Today's Major Events

Basic Elements of Quantum Theory Announced by Max Planck at Berlin Physical Society
Eunice Hill and Her Husband Make First Modern Claim of Alien Abduction
Marriage of Ferdinand II of Aragon and Isabella I of Castile

August History Calendar