Income-tax.
The first income-tax was enacted by Congress July 1, 1862, to take effect in 1863.
It taxed all income over $600 and under $10,000 3 per cent., and over $10,000 5 per cent. By the act of March 3, 1865, the rate was increased to a and to 10 per cent. on the excess over $5,000, the exemption of $600 remaining the same.
On March 2, 1867, the exemption was increased to $1,000, and the rate fixed at 5 per cent. on all excess above $1,000; the tax to be levied only until 1870.
After a contest in Congress the tax was renewed for one year only by act of July 14, 1870, at the reduce rate of 2 1/2 per cent. on the excess of income above $2,000. A bill to repeal it passed the Senate Jan. 26, 1871, by 26 to 25.
The
House refused to take up the Senate bill Feb. 9, 1871, by a vote of 104 to 105, but on March 3, 1871, concurred in the report of a committee which endorsed the Senate bill and repealed the tax. The last tax levied under the law was in 1871.
Income-taxes assessed and due in 1871 and for preceding years, however, continued to be collected, 1872-74, as seen by the subjoined table:
Amount of revenue from income-tax each year.
1863 | $2,741,857 |
1864 | 20,294,733 |
1865 | 32,050,017 |
1866 | 72,982,160 |
1867 | 66,014,429 |
1868 | 41,455,599 |
1869 | 34,791,857 |
1870 | 37,775,872 |
1871 | 19,162,652 |
1872 | 14,436,861 |
1873 | 5,062,312 |
1874 | 140,391 |
| ————— |
Total | $346908740 |
The Wilson tariff bill of 1894 contained provisions for an income-tax, which the United States Supreme Court declared unconstitutional on May 20, 1895.