The Day America Tried Taxes and Immediately Regretted It
On Jan 2, 1872, the U.S. repealed its first income tax in a spectacular “never mind” moment.
January 2, 1872 — The Day America Rage-Quit Its First Income Tax
INTRO
Picture this: It’s 1872. The U.S. government is knee-deep in Civil War debt, the economy is wobbling, and Congress decides to try something bold and experimental:
charging people money.
Yes, the very first U.S. income tax — introduced during the Civil War — was still lingering around. And on January 2, 1872, Congress looked at the paperwork, the complaints, the political heat, and collectively said:
“Yeah… let’s never do this again.”
And they repealed the entire system.
This is the story of America’s first attempt at income tax — and how quickly Americans decided they wanted absolutely nothing to do with it.
PART I — WHY THE TAX EXISTED IN THE FIRST PLACE
The Civil War was expensive.
Really expensive.
To pay for the Union war effort, Congress passed the Revenue Act of 1861, which introduced:
a 3% tax on incomes over $800
additional brackets added later
tax collectors who were paid by commission (yes, really)
For a young country that hated government oversight, this was like installing spyware on everyone’s farm.
But war makes people tolerate weird things.
PART II — THE WAR ENDS, BUT THE TAX SURVIVES
By 1865, the war was over.
But the government debt wasn’t.
Rather than immediately turning off the money faucet, Congress kept the tax running.
And Americans tolerated it… for about five minutes.
Suddenly, the war was gone, but:
tax collectors were still knocking
income reporting was still mandatory
everyone remembered how much they hated math
The national mood shifted to:
“If we won the war, why are we still paying for it?”
PART III — JANUARY 2, 1872: DELETE TAX.EXE
On this glorious day, Congress finally pulled the plug.
Lawmakers praised their own wisdom with dramatic speeches about freedom, limited government, and how the Founding Fathers probably never paid taxes anyway.
Newspapers cheered.
Voters celebrated.
Tax collectors updated their résumés.
It was one of the rare moments when both parties said:
“Yes, killing this law makes us look good.”
PART IV — THE AFTERMATH: AMERICA LEARNS NOTHING
Without income tax, where would revenue come from?
tariffs
tariffs
and even more tariffs
The economy became dependent on taxing imports like it was a national hobby.
This worked until it didn’t.
By the early 1900s, the U.S. realized that maybe, just maybe, they needed a modern tax system.
Enter:
1894 income tax attempt (struck down by Supreme Court)
massive public debates
political trench warfare
Finally in 1913, the U.S. passed:
The 16th Amendment — legalizing the modern income tax.
America had come full circle… regrettably.
CONCLUSION — A SHORT-LIVED TAX AND A LONG-LIVED LESSON
January 2, 1872, marks a truly American moment:
try something
hate it
end it
eventually bring it back anyway
The brief death of the income tax didn’t last forever — but it remains an incredible snapshot of a country that has always been allergic to the concept of paying for things.
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❓ FAQ
Q: Why was the first U.S. income tax repealed?
Because public opposition was overwhelming after the Civil War ended.
Q: Did the repeal eliminate federal revenue?
No — the government relied on tariffs for the next several decades.
Q: When did income tax return permanently?
With the 16th Amendment in 1913.