Revenue Act Of 1862

Once upon a time, in a land right under your feet (if you’re in the U.S.), there was a time when taxes were simple. As pie.

The Revenue Act of 1862 funded the Union in the American Civil War via the Bureau of Internal Revenue. This was the birth of the IRS before it was the IRS...the pre-IRS. It implemented a two-tier progressive income tax. The lower tier was a tax of 3% on incomes of $600 to $10k, while $10k+ earners paid 5%. Oh, and there was a “sin” tax on luxury goods...alcohol, even playing cards...olden days fun-time things before the internet.

Wars are...expensive. The revenue raised from the Revenue Act of 1862 helped the Union (and Lincoln) win the war against the Confederates.