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 ($59.2 million in 2025 dollars). Previously, the top rate had been 7% on income above $500,000 ($14.8 million in 2025 dollars). The Act also instituted the federal estate tax.[1]
.svg) | |
| Long title | An Act To increase the revenue, and for other purposes. |
|---|---|
| Enacted by | the 64 United States Congress |
| Effective | September 9, 1916 |
| Citations | |
| Public law | Pub. L. 64–271 |
| Statutes at Large | 39 Stat. 756 |
| Codification | |
| Acts amended | Revenue Act of 1913 |
| Legislative history | |
| |
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.
Income Tax Table for Individuals
editA 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 | |||
| Net Income (dollars) |
Normal Rate (percent) |
Additional Rate (percent) |
Combined Rate (percent) |
| 0 | 2 | 0 | 2 |
| 20,000 | 2 | 1 | 3 |
| 40,000 | 2 | 2 | 4 |
| 60,000 | 2 | 3 | 5 |
| 80,000 | 2 | 4 | 6 |
| 100,000 | 2 | 5 | 7 |
| 150,000 | 2 | 6 | 8 |
| 200,000 | 2 | 7 | 9 |
| 250,000 | 2 | 8 | 10 |
| 300,000 | 2 | 9 | 11 |
| 500,000 | 2 | 10 | 12 |
| 1,000,000 | 2 | 11 | 13 |
| 1,500,000 | 2 | 12 | 14 |
| 2,000,000 | 2 | 13 | 15 |
- Exemption of $3,000 for single filers and $4,000 for married couples.
Notes
edit- ↑ Revenue Act of 1916, section 201, Ch. 463, 39 Stat. 756, 777 (Sept. 8, 1916).
- ↑ Facsimile from Statutes at Large
External links
edit
 | This United States federal legislation article is a stub. You can help Wikipedia by adding missing information. |