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Lincoln also was behind national legislation towards the same end, but the Southern states, which regarded themselves as having seceded from the Union, ignored the proposals. [ 2 ] [ 3 ] In 1863, state legislation towards compensated emancipation in Maryland failed to pass, as did an attempt to include it in a newly written Missouri constitution.
On April 16, 1862, President Lincoln signed the District of Columbia Compensated Emancipation Act. This law prohibited slavery in the District, forcing its 900-odd slaveholders to free their slaves, with the federal government paying owners an average of about $300 (equivalent to $9,000 in 2023) for each.
The new tax proposed by Congress in the Revenue Act of 1862 was the first progressive income tax placed on United States residents. This tax reflected the taxpayers' "ability to pay" by separating citizens into multiple categories and taxing accordingly: [10] For U.S. residents whose annual incomes were less than $600, no tax was collected.
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The later United States Notes could not be used to pay customs duties or interest on the public debt, which could be paid only by gold and Demand Notes. Importers, therefore, continued to use Demand Notes in place of gold. In March 1862, Demand Notes were made legal tender. As Demand Notes were used to pay duties, they were taken out of ...
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