The United States Revenue Act of 1916, (ch.
756, September 8, 1916) raised the lowest income tax rate from 1% to 2% and raised the top rate to 15% on taxpayers with incomes above $2 million ($56 million in 2023 dollars).
Previously, the top rate had been 7% on income above $500,000 ($14 million in 2023 dollars).
[1] The entry of the United States into World War I greatly increased the need for revenue.
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