The IRS wasn't created until 1[8]62, after the Civil War had started. Thus, it had no bearing upon the states that had seceded from the U.S.
I guess I do not understand your point. The income tax became law during the Special Session of Congress that was called July 4, 1861. Union revenue laws did not effect the Confederacy. No Union laws were enforcable in the Confederacy. The six percent bonds and treasury notes were authorized by the same Act which authorized the income tax.
https://en.wikipedia.org/wiki/Greenback_(1860s_money)
Demand Notes
The first measure to finance the war occurred in July 1861, when Congress authorized $50,000,000 in Demand Notes. They bore no interest but could be redeemed for specie "on demand." They were not legal tender before March 1862 but, like Treasury Notes, could be used to pay customs duties.
United States Notes
The number of Demand Notes issued was far insufficient to meet the war expenses of the government but even so was not supportable.The solution came from Colonel "Dick" Taylor, an Illinois businessman who was serving as a volunteer officer. Taylor met with Lincoln in January 1862 and suggested issuing unbacked paper money. Lincoln did not like the idea of issuing unbacked paper money, but there was mounting pressure in Congress to do something about the financial situation. The government could either print its own money or go into deep perpetual debt to foreign creditors. This caused President Lincoln to quickly endorse Taylor's proposal. On February 25, 1862, Congress passed the first Legal Tender Act, which authorized the issuance of $150 million in United States Notes.
https://emergingcivilwar.com/2021/07/27/us-government-financing-of-the-civil-war/
Personal Income TaxThe Revenue Act of 1861 was passed to increase import tariffs, property taxes, and for the first time, to levy a flat rate income tax of 3% on incomes above $800. Its drawback was that it lacked a comprehensive enforcement mechanism. Thaddeus Stevens, chairman of the House Committee of Ways and Means Committee, avowed, “This bill is a most unpleasant one. But we perceive no way in which we can avoid it and sustain the government. The rebels, who are now destroying or attempting to destroy this Government, have thrust upon the country many disagreeable things.”
In 1862, President Lincoln signed a law imposing a graduated income tax. The law levied a 3% tax on incomes between $600 and $10,000 and a 5% tax on higher incomes. The law was later amended in 1864; it levied a 5% tax on incomes between $600 and $5,000, a 7.5% tax on incomes in the $5,000-$10,000 range and a 10% tax on all higher incomes.
1861 saw the Revenue Act with an income tax. It was passed during the Special Session of Congress that began July 4, 1861. 1862 saw the first commissioner of the Internal Revenue Bureau take office to enforce the income tax.
H.R. 54, Inroduced July 16, 1861. Amended July 29, 1861. Became law as Act of August 5, 1861. 12 Stat. 292.
Income tax at Sections 49 and 50.
[Start of Act] https://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=012/llsl012.db&recNum=323
[Sections 49 and 50] https://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=012/llsl012.db&recNum=340
The income tax became law during the Special Session of Congress that was called July 4, 1861.
Since the states started seceding from the Union beginning in Dec. of 1860 and culminating in June of 1861, I seriously doubt that any of the seceding states paid their taxes. So even the law you cite has no bearing in the discussion.
As far as the fiat currency is concerned, you again make my point. Yes it didn't start out as a fiat currency, but it quicky became a fiat currency. The Confederate Dollar started out as a fiat currency.
The Revenue Act of 1861 certainly had nothing to with the the southern states that had seceded from the Union, but yes it was another way for the Union to generate revenue for the Union. So what is your point there? No one is denying that the revenue lost from the southern states didn't negatively impact the Union. So, the question remains was the impact as great as Col. John B. Baldwin's Sworn Testimony implied?
Would a reduction in your earning of 15% negatively impact you? Especially if you were now forced to take on a costly commitment that mostly likely would involve years of coverage. Don't you wish you had the power to print your own money when the SHTF financially? 🙂
My point is that no one has made the case that the percentage being bantered around, 72%, as what the south contributed to the Federal Treasury. What was presented was only the export percentage that south paid to the treasury. That is not the complete picture. The real cost was the new obligation to wage war. The lost revenue absolutely had an impact doing that, but would it have collapsed the north if the north had decided to let the south secede? I don't know, because I don't have enough information to make that determination. Now I'm not stating that the 72% is incorrect, what I'm saying is that the percentage hasn't been confirmed as being 72%.
Here is what was the reality of that income tax act of 1861:
On August 5, 1861, President Lincoln imposes the first federal income tax by signing the Revenue Act. Strapped for cash with which to pursue the Civil War, Lincoln and Congress agreed to impose a 3 percent tax on annual incomes over $800.
Congress repealed Lincoln’s tax law in 1871, but in 1909 passed the 16th Amendment, which set in place the federal income-tax system used today. Congress ratified the 16th Amendment in 1913.