Tariffs/Tax/Fiscal Policy Timeline

  • War of 1812

    Due to the high cost of the War of 1812, the government began taxing jewelry, precious metals, and watches.
  • First Direct Taxes

    In 1813, Congress created direct taxes on land, property, and products.
  • First Income Tax

    Due to the Civil War, Abraham Lincoln created the country's first income tax.
  • Supreme Court Decisions

    In 1895, the Supreme Court ruled that you could not create income taxes without dividing it based on population.
  • Sixteenth Amendment

    In 1909, the Sixteenth Amendment was passed, in which the federal government could directly collect taxes from individuals.
  • WWI's Effects

    Due to WWI, taxes on the super-wealthy increased drastically, up to 77%.
  • FICA Creation

    Franklin Delano Roosevelt ratified FICA in 1937, creating the deduction on pay stubs.
  • WWII Ups the Ante

    WWII upped the top marginal tax rate all the way up to 94%.
  • JFK's Revolutionary Idea

    John F. Kennedy was the first President to push for tax cuts, dropping the highest marginal tax rate from 91% to 77%.
  • Reagan's Tax Cuts

    Ronald Reagan's tax reform bill cut the highest marginal rate to 38.5%, consolidated tax brackets, and simplified tax code.