The Revenue Act of 1913 reduced the average import tariff rates from approximately 40 percent to approximately 26 percent. It also restored a federal income tax for the first time since 1872 (the federal government had also adopted an income tax in the 1890s, but that tax had been struck down by the Supreme Court before taking effect). The Revenue Act of 1913 imposed a one percent tax on incomes above $3,000, with a top tax rate of six percent on those earning more than $500,000 per year. Approximately three percent of the population was subject to the income tax. The bill also included a one percent tax on the net income of all corporations, superseding a previous federal tax that had only applied to corporate net incomes above $5,000. The Supreme Court upheld the constitutionality of the income tax in the cases of Brushaber v. Union Pacific Railroad Co. and Stanton v. Baltic Mining Co.
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