Revenue_Act_of_1935
The Revenue Act of 1935, 49 Stat. 1014 (Aug. 30, 1935), raised federal income tax on higher income levels, by introducing the "Wealth Tax".[1] It was a progressive tax that took up to 75 percent of the highest incomes (over $1 million per year).[2] The Congress separately also passed new taxes that were regressive, especially the Social Security tax.
It was signed into law by President Franklin D. Roosevelt over strong opposition from business, the rich, and conservatives from both parties. The 1935 Act also was popularly known at the time as the "Soak the Rich" tax.[3] To solve the problem of tax evasion through loopholes, the Revenue Act of 1937 revised tax laws and regulations to increase the efficacy of the tax.[2]