In 1798, the Fifth Congress enacted a progressive wealth tax. Then, for instance, a house worth $300 bore tax of 60 cents; a house worth $30,000 bore tax of $300 — that’s 500 times more tax on property worth 100 times more. Direct Tax Act, 1 Stat. 597, 599, http://constitution.org/uslaw/sal/001_statutes_at_large.pdf (a huge file also linked here).
But that experiment that didn’t last, maybe in part because it involved a cumbersome direct tax that had to be apportioned among states according to population. North Carolina, for instance, had to pay $193,697.96 – “and five mills.” Tennessee had to pay only $18,806.38 – “and three mills.” There was also a tax on slaves – 50 cents each. Folks in the North thought they were paying too much, and started Fries’ Rebellion.
If the tax brought in too much to bring in a state’s apportioned share, rates on houses were to be reduced. If too little, undeveloped land was to be taxed.
Here’s an excerpt:
Upon every dwelling-house which, with the out-houses appurtenant
thereto, and the lot whereon the same are erected, not exceeding two
acres in any case, shall be valued in manner aforesaid, at more than one
hundred, and not more than five hundred dollars, there shall be assessed
in the manner herein provided, a sum equal to two tenths of one per
centum on the amount of the valuation : upon every dwelling-house
which shall be valued as aforesaid, at more than five hundred, and not
more than one thousand dollars, there shall be assessed a sum equal to
three tenths of one per centum on the amount of the valuation : upon
every dwelling-house which shall be valued as aforesaid, at more than
one thousand dollars, and not more than three thousand dollars, there
shall be assessed a sum equal to four tenths of one per centum on the
amount of the valuation : upon every dwelling-house which shall be
valued as aforesaid, at more than three thousand, and not more than six
thousand dollars, there shall be assessed a sum equal to one half of one
per centum on the amount of the valuation : upon every dwelling-house
which shall be valued as aforesaid, at more than six, and not more than
ten thousand dollars, there shall be assessed a sum equal to six tenths of
one per centum on the amount of the valuation : upon every dwelling.
house which shall be valued as aforesaid, at more than ten, and not more
than fifteen thousand dollars, there shall be assessed a sum equal to seven
tenths of one per centum on the amount of the valuation ; upon every
dwelling-house which shall be valued as aforesaid, at more than fifteen,
and not more than twenty-thousand dollars, there shall be assessed a sum
equal to eight tenths of one per centum on the amount of the valuation :
upon every dwelling-house which shall be valued as aforesaid, at more
than twenty, and not more than thirty thousand dollars, there shall be
assessed a sum equal to nine tenths of one per centum on the amount of
the valuation ; and upon every dwelling-house which shall be valued as
aforesaid, at more than thirty thousand dollars, there shall be assessed a
sum equal to one per centum on the amount of the valuation.
The Center for New Revenue 