Events

Congress passed the Revenue Act of 1861 on August 5, introducing the first federal income tax in American history to finance the Civil War. The tax imposed a 3% levy on incomes over $800, roughly $26,000 in today's money, affecting less than 3% of the population. A graduated version followed in 1862, taxing incomes over $600 at 3% and incomes over $10,000 at 5%. The tax raised $55 million in its first year and proved that the federal government could fund itself through direct taxation rather than relying solely on tariffs and land sales. Congress repealed the income tax in 1872, but the principle was established. The 16th Amendment made income tax permanent in 1913.

Workers laid the cornerstone for the Statue of Liberty's pedestal on Bedloe's Island (now Liberty Island) on August 5, 1884. The statue itself, a gift from France designed by Frederic Auguste Bartholdi, was being assembled in Paris and would not arrive until the following year. The pedestal was an American responsibility, and fundraising had stalled badly until newspaper publisher Joseph Pulitzer launched a campaign in the New York World, shaming wealthy donors and collecting pennies from immigrants and schoolchildren. Over 120,000 people contributed, most giving less than a dollar. The completed statue was dedicated on October 28, 1886, and became the first thing millions of immigrants saw as they sailed into New York Harbor.