Calculate the federal income taxes different groups would pay under the tax laws in place during the Civil War. Use the information below to calculate the amount of tax for each situation. After you have calculated the tax, click on the correct answer from the choices below. To assess your answers, click the Check My Answers button at the bottom of the page.
In 1862, the federal income tax was 3 percent on incomes between $600 and $10,000 per year and 5 percent on incomes over $10,000 per year. In 1864, the federal income tax was 5 percent on incomes between $600 and $5,000 per year, 7.5 percent on incomes between $5,000 and $10,000 per year, and 10 percent on incomes over $10,000 per year.
1) In 1862, you made $750. How much did you pay in income taxes?
2) Your neighbor made $4,500 in 1862. What was the tax he paid on income?
3) In 1864, you made $3,000. What was your income tax this year?
4) Your neighbor made $11,000 in 1865. How much did she pay in income taxes?