August 5
Congress approved the first income tax in American history on this day in 1861. In order to raise money for the incipient war effort, the Revenue Act of 1861 levied a flat tax of 3% on all annual incomes over $800, in addition to a new property tax and a tariff increase. “This bill is a most unpleasant one,” said Thaddeus Stevens (Tommy Lee Jones in the movie). “But we perceive no way in which we can avoid it and sustain the government. The rebels, who are now destroying or attempting to destroy this Government, have thrust upon the country many disagreeable things.”
The new taxes proved very difficult to enforce, so Congress responded the following year by establishing the precursor to the IRS. The Revenue Act of 1862 also replaced the flat income tax with the country’s first progressive tax; those with annual incomes under $600 weren’t taxed at all, those making between $600 to $10,000 per year were taxed at 3%, while wealthy individuals making in excess of $10,000 were taxed at the onerous rate of 5%.
As the country’s revenue infrastructure improved, income taxes became increasingly easier to collect until their sunset in 1872 (or 1866, depending on which wikipedia article is right). The income tax would make its permanent return upon ratification of the Sixteenth Amendment in 1913.
Sources: Wikipedia entries for Revenue Act of 1861, Revenue Act of 1862, Income tax in the United States and Sixteenth Amendment; history.com article
The world’s preeminent escape artist, Harry Houdini, performed one of his greatest (and final) stunts on this day in 1926, spending 91 minutes inside a 700-lb. casket submerged in a hotel swimming pool before breaking free. His feat was in response to a challenge by Egyptian magician Rahman Bey, who had performed a similar trick just a month before. Houdini bested his rival by a half hour.
He died less than three months later from a ruptured appendix caused by multiple blows to his abdomen; Houdini’s surprise attacker was a fan curious about the strength of his abdominal muscles.
Sources: Wikipedia entry for Harry Houdini; article at findingdulcinea.com
American Bandstand premiered to a national audience on this day in 1957. From the Beach Boys to Stevie Wonder, Bandstand was the show where countless rock n’ roll stars made their first television appearances. Anodyne host Dick Clark helped make the new “youth culture” and its attendant music somewhat palatable to the wary older generation. Bandstand was also a pioneer in racial integration, seating black and white audience members together very early in the show’s run.
Sources: Wikipedia entries for American Bandstand and Dick Clark
