Despite being the nation’s first Republican president, Abraham Lincoln created the first income tax in 1861 to fund the Union side of the Civil War: a flat tax of 3% on incomes over $800. It was later amended in 1862 to a 3% tax on incomes between $600 and $10,000 and 5% above $10,000 as the Civil War dragged on. It was later rescinded in 1872 due to public outcry.The US system has been historically successful for the most part, because its cultural societal roots and governmental structure are founded in t ...