Revenue Act of 1924

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President Coolidge signing the income tax bill. Andrew Mellon is the third figure from the right, and Director of the Budget, General Herbert Mayhew Lord, is to Mellon's left

The United States Revenue Act of 1924 also known as the Mellon tax bill cut federal tax rates and established the U.S. Board of Tax Appeals, which was later renamed the Tax Court of the United States in 1942. The bill was named after Secretary of the Treasury Andrew Mellon.

Prior to its passage, the top income tax bracket taxed income above $500,000 at a 46 percent rate. In 1925, the top bracket taxed all income above $100,000 at only a 25 percent rate.

The bottom rate, on income under $4,000, fell from 1.5 percent to 1.125 percent (both rates are after reduction by the "earned income credit").

A parallel act, the Indian Citizenship Act of 1924 (43 U.S. Stats. At Large, Ch. 233, p. 253 (1924)), granted all non-citizen resident Indians citizenship. [1] Thus the Revenue Act declared that there were no longer any "Indians, not taxed" to be not counted for purposes of apportionment.

President Calvin Coolidge signed the bill into law.

Tax Acts of the United States