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Revenue Act of 1924

Calvin Coolidge

Revenue Act of 1924: Calvin Coolidge was the 30th American President who served in office from August 2, 1923 to March 4, 1929. One of the important events during his presidency was the Revenue Act of 1924.

Definition and Summary of the Revenue Act of 1924
Summary and definition:
The Revenue Act of 1924 was part of the Mellon Plan to lower tax rates and established the U.S. Board of Tax Appeals. It was called "An Act To reduce and equalize taxation, to provide revenue, and for other purposes." The bill was introduced by Andrew Mellon as Secretary of the Treasury during the Republican administration of Calvin Coolidge.

The bill introduced tax cuts but included a gift tax for the wealthy. It also introduced the U.S. Board of Tax Appeals and a clause allowing for publicity of individual income tax information.

Facts about Revenue Act of 1924
The following fact sheet contains interesting facts and information on Revenue Act of 1924.

The bill introduced a gift tax to address the issue of wealthy individuals avoiding inheritance tax, estate tax invoked at death, by transferring wealth during their lifetimes. Due to strong opposition this was revoked in the 1926 Revenue Act.

The law allowed for publicity of individual income tax information. This allowed major newspapers to publish lists of names, addresses and tax payments in publications.

The Board of Tax Appeals was created by the Revenue Act of 1924. The Tax Court specialized in adjudicating disputes over federal income tax.

U.S. Board of Tax Appeals was initially established as an "independent agency in the executive branch of the government. The U.S. Board of Tax Appeals originally had 16 members, with Charles D. Hamel serving as the first Chairman.

The law reduced the 73% federal income tax to 40% and reduced the 4% federal income tax paid by the majority of tax payers.

By 1928 the majority of tax payers were paying % federal income tax and wealthy Americans were paying 25%.

The 1920s were a golden age for tax cuts initiated as part of the Mellon Plan. The tax laws put more money into the hands of the consumers by lowering the federal income tax.

However, the tax cuts contributed to the rampant spending trend of consumers, which in turn led to over production of goods, which in turn led to the 1929 Wall Street Crash.

For additional interesting facts and information refer to the Economic Boom of the 1920's and Consumerism in the 1920's.

US American History
1913-1928: WW1 & Prohibition

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