- Revenue Act of 1916
The
United States Revenue Act of 1916, (ch. 463, USStat|39|756,September 8 ,1916 ) raised the lowestincome tax rate from 1 % to 2 % and raised the top rate to 15 % on taxpayers with incomes above $2 million. (Previously, the top rate had been 7 % on income above $500,000.)The entry of the United States into
World War I greatly increased the need for revenue.An
excess profits tax was introduced and the modernestate tax 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.
Inflation-adjusted numbers
[http://minneapolisfed.org/Research/data/us/calc/index.cfm Corrected for inflation] by CPI:
Notes
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