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 ($57.8 million in 2024 dollars). Previously, the top rate had been 7% on income above $500,000 ($14.4 million in 2024 dollars). The Act also instituted the federal estate tax.

The entry of the United States into World War I greatly increased the need for revenue.

An excess profits tax was introduced and the modern estate tax was imposed.

The act was applicable to incomes for 1916.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.