Title: Personal Finances of Abraham Lincoln
Headings: 
VIII. Savings During the Presidency
Content: This tax was to be paid June 30, 1862, but Congress met before that date and reported a new bill. The House committee which reported the bill made clear their antipathy to an income tax, but under the circumstances, one was un|avoidable. The tax, their report said plaintively, was an "inquisitorial one at best; but, upon looking into the considerable class of state officers, Page 126 and the many thousands who are employed on a fixed salary, most of whom would not contribute a penny unless called upon through this tax, it has been thought best not to wholly abandon it." 4
Income tax was first collected under the general revenue act, ap|proved July 1, 1862. A tax was imposed upon the salaries of federal officials at the rate of three per cent on incomes in excess of $600, and the disbursing officers were required to withhold the "income duty," as it was called, at the time of the payment of the salary. Some time was required to set up the machinery of collection, with the result that the first withdrawal of $61 from Lincoln's salary warrant was not made until September, 1862. Thereafter his warrant was re|duced from $2,083.33 to $2,022.33 a month. The continuance of the war and the pressing need of more revenue led to the enactment of a new law on June 30, 1864. Under its provisions salaries of federal offi|cials were taxed at five per cent on annual income above $600.