Tax Day Emancipation

Tax AdministrationEvent1862
RegionUSA
Year1862
TypeTax Administration
CategoryEvent

About Tax Day Emancipation

During the Civil War, Congress enacted the first federal income tax in 1861, but it was largely uncollectible. The Revenue Act of 1862 created a more workable income tax and established the office of Commissioner of Internal Revenue. The act also created the Bureau of Internal Revenue, the predecessor of the IRS. The income tax was 3 percent on income over 600 and 5 percent on income over 10,000. An income tax was also imposed during the War of 1812 but was repealed after the war. The Civil War income tax was allowed to expire in 1872. When the Supreme Court struck down the peacetime income tax in Pollock v Farmers Loan 1895, it took a constitutional amendment to bring it back permanently in 1913.

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