before 1913, the bulk of federal revenues came from indirect taxes on goods. these include tariffs on goods imported into the country. they also included excise taxes on items like whiskey. income taxes were not new in 1913. congress had passed the revenue act of 1861 during the civil war to help pay for the war. ten years later it was allowed to lapse. the confederate states of america also had an income tax. starting in 1863, the tax exempted the first $1,000 and charged a 1% tax on the first $1,500 over the exemption. a 2% tax was levied on all income over that amount.