The Internal Revenue Act of 1862 established which of the following for the first time in U.S. history?
Show answer and explanation
Correct answer: A federal tax on personal income
To pay for the war's enormous costs, the Union created the Bureau of Internal Revenue and implemented an income tax. Although it was repealed after the war, it set a precedent for the modern federal tax system.
Keep practicing
More Economic and Social Impacts questions
- The Legal Tender Act of 1862 was significant because it:
- Which of the following was a primary reason for the hyperinflation experienced by the Confederacy?
- The National Bank Act of 1863 was designed to:
- The Homestead Act of 1862 encouraged Western settlement during the war by:
- The Morrill Land Grant Act (1862) had a long-term social impact by:
- The 1863 New York City Draft Riots were largely fueled by: