American Civil War: In order to help pay for the war effort, the United States government levies the first income tax as part of the Revenue Act of 1861 (3% of all incomes over US$800; rescinded in 1872).

American Civil War

1861–1865 conflict in the United States

The American Civil War was a civil war in the United States between the Union and the Confederacy, which was formed in 1861 by states that had seceded from the Union. The central conflict leading to war was a dispute over whether slavery should be permitted to expand into the…

Federal government of the United States

The federal government of the United States is the national government of the United States.

Income tax

Tax based on taxable income

An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer…

Revenue Act of 1861

US legislation establishing the first national income tax

The Revenue Act of 1861, formally cited as Act of August 5, 1861, Chap. XLV, 12 Stat. 292, included the first U.S. Federal income tax statute. The Act, motivated by the need to fund the Civil War, imposed an income tax to be "levied, collected, and paid, upon the annual income…

1872

Calendar year

1872 (MDCCCLXXII) was a leap year starting on Monday of the Gregorian calendar and a leap year starting on Saturday of the Julian calendar, the 1872nd year of the Common Era (CE) and Anno Domini (AD) designations, the 872nd year of the 2nd millennium, the 72nd year of the 19th…