Revenue Act of 1918

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The Revenue Act of 1918, 40 Stat. 1057, raised income tax rates once again. The bottom tax bracket was expanded but raised from 2 % to 6 %.

The top rate was hiked to 77 %, and applied to income above $1,000,000. The top rate of the War Revenue Act of 1917 had taxed all income above $2,000,000 at a 67 % rate.

Even in 1918, only 5 % of the population paid federal income taxes (up from 1 % in 1913), and yet the income tax funded one-third of the cost of World War I.

[edit] Inflation-adjusted numbers

Corrected for inflation by CPI:

1918 dollars	2005 dollars
$1,000,000	$12,933,775
$2,000,000	$25,867,550

Tax Acts of the United States

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