Revenue Act of 1916
The United States Revenue Act of 1916, (ch. 463, 39 Stat. 756, September 8, 1916) raised the lowest income tax rate from 1% to 2% and raised the top rate to 15% on taxpayers with incomes above $2 million. (Previously, the top rate had been 7% on income above $500,000.) The Act also instituted the federal estate tax.
The entry of the United States into World War I greatly increased the need for revenue.
The act was applicable to incomes for 1916.
Income Tax Table for IndividualsEdit
A Normal Tax and an Additional Tax were levied against the net income of individuals as shown in the following table.
|Revenue Act of 1916|
Normal Tax and Additional Tax on Individuals
- Exemption of $3,000 for single filers and $4,000 for married couples.
Corrected for inflation by CPI:
|1916 dollars||2009 dollars|
- Revenue Act of 1916, section 201, Ch. 463, 39 Stat. 756, 777 (Sept. 8, 1916).
- Facsimile from Statutes at Large
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I think the facts may be skewed a bit and worth more researching. I have found so many different "facts" that conflict from pretty reliable sources. I think this needs much more research. https://www.history.com/this-day-in-history/war-revenue-act-passed-in-u-s