U.S. Presidents Who Enacted Major Tax Increases: A Historical List
While many presidents are known for tax cuts, some have raised taxes—often to fund wars, fix budget holes, or support big programs. These hikes usually hit during crises like the Civil War, Great Depression, or World War II. Here’s a kid-friendly list of the most significant tax increases by U.S. presidents (focusing on broad income tax rate hikes or major revenue boosts). We’ve included why they did it and a fun fact for each!
-
Abraham Lincoln (1861–1865)
- Major Tax Increase: Revenue Act of 1861 (first federal income tax in U.S. history)
- What happened: Created a 3% tax on incomes $600–$10,000 and 5% over $10,000 to pay for the Civil War.
- Fun fact for kids: This was the birth of the IRS (created in 1862)—Lincoln started the modern tax system!
-
Franklin D. Roosevelt (1933–1945)
- Major Tax Increases: Revenue Acts of 1932–1945 (top rate hit 94% in 1944) + Social Security payroll tax (1935)
- What happened: Raised rates dramatically to fund New Deal programs and WWII—top rate went from 25% to 94%.
- Fun fact: FDR once proposed a 100% tax on incomes over $25,000—he wanted the rich to pay for the war effort!
-
Harry S. Truman (1945–1953)
- Major Tax Increase: Revenue Act of 1950/1951 (top rate to 91–92%)
- What happened: Raised rates to fund the Korean War—top rate hit 91%, one of the highest ever.
- Fun fact: Truman’s hikes were so big some call them the largest tax increase in U.S. history (as % of GDP)!
-
Lyndon B. Johnson (1963–1969)
- Major Tax Increase: Revenue and Expenditure Control Act of 1968 (10% surtax)
- What happened: Added a temporary 10% surtax on income to pay for Vietnam War and Great Society programs.
- Fun fact: LBJ loved barbecues—imagine paying extra taxes to fund both war and his famous Texas cookouts!
-
George H.W. Bush (1989–1993)
- Major Tax Increase: Omnibus Budget Reconciliation Act of 1990
- What happened: Raised top rate from 28% to 31% and added new taxes to reduce deficits (broke his “no new taxes” pledge).
- Fun fact: Bush Sr. lost re-election in 1992—many say the tax hike hurt his popularity!
- Woodrow Wilson (1913–1921): Signed the 16th Amendment (1913) enabling federal income tax—first modern income tax system.
- Herbert Hoover (1929–1933): Revenue Act of 1932 raised top rate from 25% to 63% during the Great Depression.
- Bill Clinton (1993–2001): Omnibus Budget Reconciliation Act of 1993 raised top rate to 39.6%.
