Politics & Government

First U.S. Income Tax Enacted During Civil War

To finance the Civil War, the United States government introduced its first income tax under the Revenue Act of 1861. The tax was set at 3% on incomes exceeding $800. This step marked a significant shift in federal revenue policy and laid the groundwork for future taxation systems. Aimed at supporting the war effort, this income tax represented a new approach to funding government operations amid conflict.

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