8 sept 1916 año - Revenue Act of 1916

Descripción:

This act raised the lowest income 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 Act also instituted the federal estate tax.

Facing the need for further revenue due to an arms build-up, in 1916 the Wilson administration called for the passage of another major revenue bill. PresidentWilson and congressional allies like Congressman Claude Kitchin rejected a proposal to increase tariff rates, instead favoring increased taxes on high earners. Working with progressive Republicans, Congressional Democrats won passage of the Revenue Act of 1916, which reinstated the federal estate tax, established a tax on the production of munitions, raised the top income tax rate to fifteen percent, and raised the corporate income tax from one percent to two percent. That same year, the President signed a law that established the Tariff Commission, which was charged with providing expert advice on tariff rates.

The act was applicable to incomes for 1916.