The Revenue Act of 1935, 49 Stat. 1014 (Aug. 30, 1935), raised federal income tax on higher income levels, by introducing the "Wealth Tax".[1] It was a progressive tax that took up to 75 percent of the highest incomes (over $1 million per year).[2] The Congress separately also passed new taxes that were regressive, especially the Social Security tax.
It was signed into law by President Franklin D. Roosevelt over strong opposition from business, the rich, and conservatives from both parties. The 1935 Act also was popularly known at the time as the "Soak the Rich" tax.[3] To solve the problem of tax evasion through loopholes, the Revenue Act of 1937 revised tax laws and regulations to increase the efficacy of the tax.[2]
- ^ Roy G. Blakey, and Gladys C. Blakey. "The Revenue Act of 1935." American Economic Review (1935): 673-690. online
- ^ a b "Understanding Taxes Student Site". Internal Revenue Service. Retrieved December 31, 2012.
President Franklin D. Roosevelt's New Deal programs forced an increase in taxes to generate needed funds. The Revenue Act of 1935 introduced the Wealth Tax, a new progressive tax that took up to 75 percent of the highest incomes. Many wealthy people used loopholes in the tax code. The Revenue Act of 1937 cracked down on tax evasion by revising tax laws and regulations.
- ^ Henretta, James; David Brody; Lynn Dumenil; Susan Ware (2004). America's History - Volume 2: Since 1865. Boston: Bedford/St. Martin's. p. 729. ISBN 0-312-40958-3.