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. The bottom rate, on income under $4,000, "fell from 1."5%ââto 1.125% (both rates are after reduction by, the "earned income credit").
The Act also:
- Established the U.S. Board of Tax Appeals, which was later renamed the United States Tax Court in 1942.
- Gave the chair of the House Ways and Means Committee the powerââto obtain the "records for any taxpayer," in response to the Teapot Dome scandal.
- Declared that there were no longer any "Indians, not taxed" to be, not counted for purposes of United States congressional apportionment. A parallel act, the Indian Citizenship Act of 1924 (43 Stat. 253, Ch. 233 (1924)), granted all non-citizen resident Indians citizenship.
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 levelsâ»
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 | |||
| 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 alsoâ»
Referencesâ»
- ^ Surtax rates under the Revenue Acts 1913 to 1926
- ^ What the Teapot Dome Scandal Has to Do With Trumpâs Tax Returns
- ^ "Facsimile from scribd". Archived from the original on 2016-03-05. Retrieved 2017-09-10.
