President Abraham Lincoln signs the first income tax bill; the Revenue act of 1861, establishing a 3% flat rate on annual incomes of $800 or more and some import tariffs, and property taxes. The Bill was enacted during the Civil War as a temporary measure to help finance the war effort. This initial income tax was fairly ineffective as it lacked a strong enforcement mechanism. It was repealed in 1862 and replaced with a different revenue act.
