THIS DAY @ LAW

President Lincoln signed first US federal income tax act

On July 1, 1862, the Tax Act of 1862 was passed and signed by President Lincoln, establishing a 3% federal tax on income above $600 and a 5% tax on income above $10,000.

Compliance with the act was poor, even though there were needs for the Civil War. After the war the act was declared unconstitutional by the Supreme Court. Review a brief history of the US income tax from the Library of Congress.

UK returns Hong Kong to China

On July 1, 1997, the United Kingdom returned Hong Kong to China at the conclusion of a 99-year lease. The foundation for the transfer of power was set in December of 1984, when China and UK signed the Sino-British Joint Declaration on Hong Kong. The Declaration affirmed the handover of Hong Kong along with governing principles. Most significantly, the Chinese agreed not to impose their socialist system on Hong Kong.