Supreme Court Cases
List of significant Supreme Court cases -- this page is under construction
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Revenue Act of 1862, 12 Stat. 432 (July 1, 1862)
| 1862 dollars | 2023 dollars | Tax Rate | 2023 Effective Rate |
|---|---|---|---|
| $600 | $18,312 | 3% above $600 | $0.00 on $18,312 |
| $10,000 | $305,200 | 5% above $10,000 | $8,606.64 on $305,200 |
| $50,000 | $1,526,000 | 7.5% above $50,000 | $28,606.64 on $1,526,000 |
The Revenue Act of 1861 levied a 3% flat rate income tax on those with an annual income at or exceeding $800 (the corresponding income in 2021 is $384K). In 1861, only 3% of the population had an annual income of at least $800;
Pollock v. Farmers' Loan & Trust Company, 158 U.S. 601 (1895)
We have considered the act only in respect of the tax on income derived from real estate, and from invested personal property, and have not commented on so much of it as bears on gains or profits from business, privileges, or employments, in view of the instances in which taxation on business, privileges, or employments has assumed the guise of an excise tax and been sustained as such.
cited in Pollock: Attorney General v. Reed, 10 App.Cas. 141, 144
The question whether it is a direct or an indirect tax cannot depend upon those special events which may vary in particular cases; but the best general rule is to look to the time of payment,.. ...that a direct tax is: ...one which is demanded from the very persons who it is intended or desired should pay it. And then the converse definition of indirect taxes is, those which are demanded from one person in the expectation and intention that he shall imdemnify himself at the expense of another.
The US has the highest payroll withholding rates of any Nation 1 Direct taxes include income tax, corporate tax, and taxes on capital gains.[^2] TurboTax: What is a direct tax? Income Tax...[^3]