Income tax By the 1860s, the progressive tax had become a grudgingly accepted element of the English fiscal system. The US federal government imposed the first personal income tax on August 5, 1861, to help pay for its war effort in the American Civil War - (3% of all incomes over US$800) (equivalent to $ in ). This tax was repealed and replaced by another income tax in 1862. It was only in 1894 that the first peacetime income tax was passed through the Wilson-Gorman tariff. The rate was 2% on income over $4000 (equivalent to $ in ), which meant fewer
Hall income tax there were bills to raise state government revenue by reducing the fraction of the Hall tax that is distributed to local governments. The proposals for major changes to the Hall tax failed because of the lack of alternative sources of revenue. The Hall tax is Tennessee's only tax on personal income; the state does not levy a general personal income tax. As of 1974, the Tennessee Supreme Court had consistently held that the state constitution authorized only three types of taxes: privilege taxes, "ad valorem" property taxes, and a tax on income from interest and dividends. In decisions in 1932