Revenue Act of 1926

Act of the United States Congress

President Calvin Coolidge signed the income tax bill on February 26, 1926. Andrew Mellon is the third figure from the right, and Director of the Budget, General Herbert Mayhew Lord, is to Mellon's left.

The United States Revenue Act of 1926, 44 Stat. 9, reduced inheritance and personal income taxes, cancelled many excise imposts, eliminated the gift tax and ended public access to federal income tax returns.

The most notable parts of the Act were that maximum tax rates on inheritances and large estates were halved, as were income taxes for the wealthiest. As a consequence, taxes on the wealthy were greatly reduced.[1] To garner political support for such massive tax cuts for the wealthy, the Act also provided small tax cuts across the board.[1]

Passed by the 69th Congress, it was signed into law by President Calvin Coolidge.

The act was applicable to incomes for 1925 and thereafter.[2]

## Tax on Corporations

[edit]

A rate of 13.5 percent was levied on the net income of corporations.

## Tax on individuals

[edit]

A normal tax and a surtax were levied against the net income of individuals as shown in the following table.

Revenue Act of 1926
Normal Tax and Surtax on Individuals[3] Net Income
(dollars)  | Normal Rate
(percent)  | Surtax Rate
(percent)  | Combined Rate
(percent)

|
|
|

0  | 1.5  | 0  | 1.5
4,000  | 3  | 0  | 3
8,000  | 5  | 0  | 5
10,000  | 5  | 1  | 6
14,000  | 5  | 2  | 7
16,000  | 5  | 3  | 8
18,000  | 5  | 4  | 9
20,000  | 5  | 5  | 10
22,000  | 5  | 6  | 11
24,000  | 5  | 7  | 12
28,000  | 5  | 8  | 13
32,000  | 5  | 9  | 14
36,000  | 5  | 10  | 15
40,000  | 5  | 11  | 16
44,000  | 5  | 12  | 17
48,000  | 5  | 13  | 18
52,000  | 5  | 14  | 19
56,000  | 5  | 15  | 20
60,000  | 5  | 16  | 21
64,000  | 5  | 17  | 22
70,000  | 5  | 18  | 23
80,000  | 5  | 19  | 24
100,000  | 5  | 20  | 25

* Exemption of $1,500 for single filers and $3,500 for married couples and heads of family. A $400 exemption for each dependent under 18.

## References

[edit]

1. ^ a b Blakey, Roy G. (1926). "The Revenue Act of 1926". The American Economic Review. 16 (3): 401–425\. ISSN 0002-8282.
2. ^ Surtax rates under the Revenue Acts 1913 to 1926
3. ^ Facsimile from Statutes at Large

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Calvin Coolidge

* 30th President of the United States (1923–1929)
* 29th Vice President of the United States (1921–1923)
* 48th Governor of Massachusetts (1919–1921)

Life|

* Early life and family history
* Boyhood home and first inauguration site
* gravesite
* Calvin Coolidge House
* Early career and marriage
* Lieutenant Governor and Governor of Massachusetts
* Boston police strike (1919)
* Vice Presidency
* Retirement and death
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Presidency
(timeline)|

* First inauguration
* Second inauguration
* Industry and trade
* Taxation (Revenue Act of 1924, Revenue Act of 1926, Revenue Act of 1928)
* Allegheny National Forest
* Civil rights (Indian Citizenship Act of 1924)
* Immigration Act of 1924
* Clarke–McNary Act
* Oil Pollution Act of 1924
* World War Adjusted Compensation Act (1924)
* Opposition to farm subsidies (McNary–Haugen Farm Relief Bill)
* Judiciary Act of 1925
* Federal Corrupt Practices Act Amendments of 1925
* Railway Labor Act
* Passport Act of 1926
* Flood control (Great Mississippi Flood of 1927, Flood Control Act of 1928)
* State of the Union Addresses (1926
* 1927)
* "I do not choose to run" (1927)
* Radio Act of 1927
* Federal Radio Commission
* Equal-time rule
* McFadden Act (1927)
* Brave Little State of Vermont speech (1928)
* McSweeney-McNary Act of 1928
* Migratory Bird Conservation Act
* Reed–Jenkins Act
* Foreign policy (Banana Wars, United States occupation of Nicaragua (1912–1933), United States occupation of Haiti (1915–1934), United States occupation of the Dominican Republic (1916–1924), Washington Naval Treaty (1922), Kellogg–Briand Pact (1928)
* Presidential transition of Herbert Hoover
* Cabinet
* Judicial appointments
* Harlan F. Stone Supreme Court nomination

Elections|

* 1918 Massachusetts gubernatorial election
* 1919 Massachusetts gubernatorial election
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* 1920 United States presidential election
* transition
* 1924 Republican National Convention
* 1924 United States presidential election

Books|

* The Autobiography of Calvin Coolidge (1929)

Public image|

* Things named after Coolidge
* Sesquicentennial half dollar
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Family|

* Grace Coolidge (wife)
* John Coolidge (son)
* John Calvin Coolidge Sr. (father)
* Calvin Galusha Coolidge (grandfather)
* Arthur Brown, Olympia Brown, Charles A. Coolidge (cousins)
* Marcus A. Coolidge, Arthur W. Coolidge, Martha Coolidge, Carlos Coolidge (distant relations)
* Edmund Rice (ancestor)
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* Rebecca (pet raccoon)

* ← Warren G. Harding
* Herbert Hoover →

* ← Thomas R. Marshall
* Charles G. Dawes →

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