August 5 in American History

August 5, 1861 — the first federal income tax is enacted

Congress passed the Revenue Act of 1861 to help fund the Civil War, taxing incomes over $800 at 3%. It was repealed a decade later and the modern income tax didn't return permanently until the 16th Amendment in 1913 — a reminder that "temporary wartime measure" has a long history of outliving the war.

Common Questions About August 5

What happened on August 5 in American history?

In 1861: the first federal income tax is enacted. Congress passed the Revenue Act of 1861 to help fund the Civil War, taxing incomes over $800 at 3%.

Why is August 5 significant?

Congress passed the Revenue Act of 1861 to help fund the Civil War, taxing incomes over $800 at 3%. It was repealed a decade later and the modern income tax didn't return permanently until the 16th Amendment in 1913 — a reminder that "temporary wartime measure" has a long history of outliving the war.

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the Revenue Cutter Service is foundedthe Voting Rights Act is signed