The

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

Revenue Act of 1916, (ch. 463, , September 8, 1916) raised the lowest

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

rate from 1% to 2% and raised the top rate to 15% on taxpayers with incomes above $2 million ($ in dollars). Previously, the top rate had been 7% on income above $500,000 ($ in dollars). The Act also instituted the federal

estate tax An inheritance tax is a tax paid by a person who inherits money or property of a person who has died, whereas an estate tax is a levy on the estate (money and property) of a person who has died. International tax law distinguishes between an es ...

.Revenue Act of 1916, section 201, Ch. 463, 39 Stat. 756, 777 (Sept. 8, 1916). The entry of the United States into

World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

greatly increased the need for revenue. An excess profits tax was introduced and the modern

was imposed. The act was applicable to incomes for 1916.

Income Tax Table for Individuals

A Normal Tax and an Additional Tax were levied against the net income of individuals as shown in the following table. *Exemption of $3,000 for single filers and $4,000 for married couples.

Notes

External links

*https://www.history.com/this-day-in-history/war-revenue-act-passed-in-u-s United States federal taxation legislation 1916 in American law {{US-fed-statute-stub