In 1913, the US
Congress passed the Income Tax and delegated its powers to “coin money” to the
Federal Reserve.
World War I began in
1914 and the US entered the war in 1917 and won in 1918. This created a federal
deficit of $13,363,000,000.
US Federal Income Tax
Rates began to increase and US Federal Revenue increased from $761 million in
1916 to $1.101 billion in 1917, then to $3.645 billion in 1918, $5.130 billion
in 1919 and $6.649 billion in 1920. The accumulated war deficits were $22
billion.
In 1921, Federal
Revenue decreased to $5.571 billion. In 1922 it decreased to $4.026 billion. In
1923 it decreased to $3.853 billion.
From 1920 to 1930, all federal budgets produced surpluses.
In 1931, US Federal
Revenue was $3.116 billion but ran a $462 million deficit. The Stock Market Crash of 1929 and the Dust
Bowl Drought were beginning to take a toll on the US economy.
In 1932, US Federal
Revenue had collapsed to $1.924 billion with a $2.735 billion deficit.
In 1933, Franklin
Roosevelt was elected President and deficit spending continued. The deficit for
1936 reached $4.304 billion with federal revenue at $3.923 billion.
Norb Leahy, Dunwoody
GA Tea Party Leader
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