During the Civil War, in order to fund the war, the federal government passed an income tax law. In 1862, Abraham Lincoln signed a bill that called for a 3% tax on incomes between $600 and $5,000, 7.5% on incomes between $5,000 and $10,000 and 10% on incomes over $10,000. The bill was declared unconstitutional in 1872 when it was repealed.