During his first term, Wilson presided over the passage of his progressive New Freedom domestic agenda. His first major priority was the passage of the Revenue Act of 1913, which lowered tariffs and implemented a federal income tax. Later tax acts implemented a federal estate tax and raised the top income tax rate to 77 percent. Wilson also presided over the passage of the Federal Reserve Act, which created a central banking system in the form of the Federal Reserve System. Two major laws, the Federal Trade Commission Act and the Clayton Antitrust Act, were passed to regulate and break up large business interests known as trusts. To the disappointment of his African-American supporters, Wilson allowed some of his Cabinet members to segregate their departments. Upon the outbreak of World War I in 1914, Wilson maintained a policy of neutrality between the Allied Powers and the Central Powers. He won re-election by a narrow margin in the presidential election of 1916, defeating Republican nominee Charles Evans Hughes.