the first income tax law was enacted during the civil war.
the first income tax law was enacted during the civil war.
when was the first income tax law enacted?
during the civil war
the first income tax in the united states was implemented with the revenue act of 1861 by abraham lincoln during the civil war. in 1895 the supreme court ruled that the u.s. federal income tax on interest income, dividend income and rental income was unconstitutional in pollock v. farmers' loan & trust co., because it was a direct tax. the "pollock" decision was overruled by the ratification of the sixteenth amendment to the united states constitution in 1913, and by subsequent u.s. supreme court decisions including "graves v. new york ex rel. o'keefe," "south carolina v. baker," and "brushaber v. union pacific railroad co."
taxation in the united states
rhode island's taxes were appreciably higher than neighboring states, because rhode island's income tax was based on 25% of the payer's federal income tax payment. former governor donald carcieri claimed that the higher tax rate had an inhibitory effect on business growth in the state and called for reductions to increase the competitiveness of the state's business environment. in 2010, the rhode island general assembly passed a new state income tax structure that was then signed into law on june 9, 2010 by governor carcieri. the income tax overhaul has now made rhode island competitive with other new england states by lowering its maximum tax rate to 5.99% and reducing the number of tax brackets to three. the state's first income tax was enacted in 1971.
rhode island