1862 |
Abraham
Lincoln enacts emergency measure to pay for Civil War: Minimum
3% tax rate. |
1872 |
Lincoln's
income tax law lapses. |
1894 |
2% federal
income tax enacted. |
1895 |
Income
tax ruled unconstitutional by U.S. Supreme Court in Pollack
v. Farmer's Loan and Trust. |
1909 |
16th amendment
that authorizes Congress to collect taxes on income is proposed. |
1913 |
Wyoming
casts 37th vote, ratifying the 16th amendment. One in
271 people pays 1% rate. |
1926 |
Revenue
Act of 1926 reduces taxes: Too much money being collected. |
1939 |
Revenue
statutes codified. One out of 32 citizens pays 4% rate. |
1943 |
One out
of three people pays taxes. Withholding on salaries
and wages introduced. |
1954 |
875-page
Internal Revenue Code of 1954 passes. Considered the most
monumental overhaul of federal income tax system to date.
3,000 changes to tax rules. |
1969 |
Tax Reform
Act: Major amendments to 1954 overhaul. |
1984 |
Reagan
Tax Reform Act: Most complex bill ever, requires over 180
technical corrections. |
1986 |
Tax Reform
Act reduces tax brackets from five to two. |
1993 |
Clinton's
Revenue Reconciliation Act passes by one Vice Presidential
vote. |
1996 |
Four bills
make over 700 changes, including Medical Savings Accounts
and SIMPLE plans. |
1997 |
Taxpayer
Relief Act brings more than 800 changes. Child tax credit,
Roth IRAs, capital gains reduction, breaks for higher education
enacted. |
2001 |
The Economic
Growth & Tax Relief Reconciliation Act of 2001 creates
441 changes. Lowers tax rates, repeals estate tax, increases
contribution limits on 401(k)s and IRAs. |
2003 |
The Jobs and Growth Tax Relief Reconciliation Act of
2003 accelerates 2001 Act's rate cuts; temporarily increases
child credit; temporarily lowers rates on capital gains and
dividends; increases write-offs for equipment. |