Jump to content

Revenue Act of 1924

From Wikipedia, the free encyclopedia

The United States Revenue Act of 1924 (43 Stat. 253) (June 2, 1924), also known as the Mellon tax bill (after U.S. Secretary of the Treasury Andrew Mellon) cut federal tax rates for 1924 income.[1] The bottom rate, on income under $4,000, fell from 1.5% to 1.125% (both rates are after reduction by the "earned income credit").

The Act also:

President Calvin Coolidge signed the bill into law.

From 2019 to 2022, the law was the subject of a court battle that resulted in the Ways and Means Committee obtaining the tax returns of Donald Trump.

Tax levels

[edit]

Both a normal tax and a surtax were levied against the net income of individuals, as shown in the following table:

Revenue Act of 1924
Normal Tax and Surtax on Individuals

43 Stat. 253 [3]

Net Income
(dollars)
Normal Rate
(percent)
Surtax Rate
(percent)
Combined Rate
(percent)
0 2 0 2
4,000 4 0 4
8,000 6 0 6
10,000 6 1 7
14,000 6 2 8
16,000 6 3 9
18,000 6 4 10
20,000 6 5 11
22,000 6 6 12
24,000 6 7 13
26,000 6 8 14
28,000 6 9 15
30,000 6 10 16
34,000 6 11 17
36,000 6 12 18
38,000 6 13 19
42,000 6 14 20
44,000 6 15 21
46,000 6 16 22
48,000 6 17 23
50,000 6 18 24
52,000 6 19 25
56,000 6 20 26
58,000 6 21 27
62,000 6 22 28
64,000 6 23 29
66,000 6 24 30
68,000 6 25 31
70,000 6 26 32
74,000 6 27 33
76,000 6 28 34
80,000 6 29 35
82,000 6 30 36
84,000 6 31 37
88,000 6 32 38
90,000 6 33 39
92,000 6 34 40
94,000 6 35 41
96,000 6 36 42
100,000 6 37 43
200,000 6 38 44
300,000 6 39 45
500,000 6 40 46
  • Exemption of $1,000 for single filers and $2,500 for married couples and heads of family. A $400 exemption for each dependent under 18.

See also

[edit]

References

[edit]
  1. ^ Surtax rates under the Revenue Acts 1913 to 1926
  2. ^ What the Teapot Dome Scandal Has to Do With Trump’s Tax Returns
  3. ^ "Facsimile from scribd". Archived from the original on 2016-03-05. Retrieved 2017-09-10.