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The U.S. government imposed a 3% tax on incomes exceeding $800 to fund the Civil
Featured Event 1861 Event

August 5

First Income Tax: Congress Finances the Civil War

The U.S. government imposed a 3% tax on incomes exceeding $800 to fund the Civil War effort through the Revenue Act of 1861. This bold fiscal move established the federal income tax as a permanent tool for national finance, even though Congress rescinded it in 1872 after the conflict ended.

August 5, 1861

165 years ago

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