Tax Act of 1862 Signed on July 1, 1862
Federal Income Tax Signed Into Law on This Day In History
On this day in 1862, Abraham Lincoln signed the Tax Act into law. This law established a 3% federal tax on income above $600 and a 5% tax on income above $10,000. In 2014, the lowest marginal federal income tax rate is 10% for income up to $9,000. If you have questions regarding your business or personal tax liability or tax implications in estate planning, contact one of our three attorneys who have a Master of Laws in Taxation, Brad Grossenburg, Matthew Bock, or Craig Krogstad.