revenue. Tax structure Import Tariff: The Revenue Act of 1861 levied various tariffs on imports including sugar, tea, nuts, brimstone, coffee, liquor, and various fruits and herbs. The majority of imports were taxed on a per unit basis while certain imports, often those with more volatile pricing such as hides, citrus fruit, silk, and gunpowder were taxed ad valorem, with rates ranging from 10% on hides and rubber to 50% on wines. The act imposed an additional tax of 10% ad valorem on articles imported in foreign vessels from beyond the Cape of Good Hope. The provisions included in the act expanded upon the protectionist precedent set by the Morrill Tariff of 1861. Property Tax: The Revenue Act of 1861 instituted a tax on real estate, levied in proportion to each state's population. While the act's enforcement mechanism was limited, it formally established a system of tax districts, assessors, and collectors, laying the groundwork for the Internal Revenue Service's formation on July 1, 1862. The property tax drew criticism from representatives of rural states: by taxing real estate and excluding other forms of personal property, the tax, they argued placed an undue burden upon large, sparsely populated states and territories in the West and Southwest. Though densely populated states such as New York were assessed at a higher rate due to a large population, a greater proportion of wealth in such states was invested in personal property other than real estate. Income Tax: The Revenue Act of 1861 levied a 3% flat rate income tax on those with an annual income at or exceeding $800 (which was 5.6 times the 1861 nominal gross domestic product per capita of $144.31; the corresponding income in 2021 is $384K). In 1861, only 3% of the population had an annual income of at least $800; as such, the tax enjoyed relatively widespread support among legislators. The act granted President Lincoln the power to appoint one principal assessor and one principal collector per state/territory; these officials were charged with enforcing income tax provisions. However, another portion of the bill stipulated that each state may collect and pay its own portion of the direct tax levied upon each state in its own way. Lacking an effective enforcement mechanism, the income tax provision was repealed in 1862 and replaced with a more expansive bill in the Revenue Act of 1862. The subsequent revenue act called for the