The Income Duty of 1861
The text of the law read:
SEC. 89 And be it further enacted, That for the purpose of modifying and reenacting, as hereinafter provided, so much of an act, entitled "An act to provide increased revenue from imports to pay interest on the public debt, and for other purposes,"
approved fifth of August, eighteen hundred and sixty-one, as relates to income tax;...
In 1862 the tax was called the Income Duty. And, as all duties are, it was only imposed on foreign imports, not domestic labor.
As a DUTY, income tax was recognized and classified as an Indirect Tax, NOT A DIRECT TAX. (Imposts, duties, and excises are the three categories of indirect taxes authorized and provided for in the Constitution.)
So you see, when income tax started in 1861 IT WAS A FOREIGN TAX !
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Last Update: 02/28/07
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