US Tax Rates 1913 to 2020

Year   Top Rate   Taxable Income Over

1913    7%           $500,000

1920    73%         $1,000,000

1960    91%         $200,000

1970    70%         $100,000

1987    38.5%      $54,000

2004    35%         $319,100

2008    35%         $372,950

When the Top Rate is lower, it incentivizes more production and increases Nominal GDP, jobs and tax revenues.

Prior to 1913, the US had no federal income tax and government was funded by Tariffs, Fees and Land Sales.

The Industrial Revolution was funded by the owners of the companies, who reinvested their profits in expanding their businesses, researched and invented solutions and solved their own technical problems. Bank loans were made primarily for the poor, who were trying to buy farms and other assets.

The Revenue Act of 1913 imposed a one percent tax on incomes above $3,000, with a top tax rate of six percent on those earning more than $500,000 per year. Approximately three percent of the population was subject to the income tax.

Single Income Tax Rates in 1913

$1              1%

$20000      2%

$50000      3%

$75000      4%

$100000    5%

$250000    6%

$500000    7%

https://www.tax-brackets.org/federaltaxtable/1913

By 1920, the Federal Income Single Tax rate was expanded to include a top rate of 73% on taxable income over $1 million.

Single Income Tax Rates in 1920

$1               4%

$4000         8%

$5000         9%

$6000       10%

$8000       11%

$10000     12%

$12000     13%

$14000     14%

$16000     15% 

$18000     16%

$20000     17%

$22000     18%

$24000     19%

$26000     20%

$28000     21%

$30000     22%

$32000     23%

$34000     24%

$36000     25%

$38000     26%

$40000     27%

$42000     28%

$44000     29%

$46000     30%

$48000     31%

$50000     32%

$52000     33%

$54000     34%

$56000     35%

$58000     36%

$60000     37%

$62000     38%

$64000     39%

$66000     40%

$68000     41%

$70000     42%

$72000     43%

$74000     44%

$76000     45%

$78000     46%

$80000     47%

$82000     48%

$84000     49%

$86000     50%

$88000     51%

$90000     52%

$92000     53%

$94000     54%

$96000     55%

$98000     56%

$100000   60%

$150000   64%

$200000   68%

$300000   71%

$500000   72%

$1000000 73%    

https://www.tax-brackets.org/federaltaxtable/1920

By 1960, the Federal Income Single Tax rate was expanded to include a top rate of 91% on taxable income over $200,000. .

Single Income Tax Rate in 1960

$1             20%

$2000       22%

$4000       26%

$6000       30%

$8000       34%

$10000     38%

$12000     43%

$14000     47%

$16000     50%

$18000     53%

$20000     56%

$22000     59%

$26000     62%

$32000     65%

$38000     69%

$44000     72%

$50000     75%

$60000     78%

$70000     81%

$80000     84%

$90000     87%

$100000   89%

$150000   90%

$200000   91%

Corporate Tax Rate 50%

https://www.tax-brackets.org/federaltaxtable/1961

By 1970, the Federal Income Single Tax rate was expanded to include a top rate of 70% on taxable income over $100,000. .

Single Income Tax Rate in 1970.

$1            10%

$500        15%

$1000      16%

$1500      17%

$2000      19%

$4000      22%

$6000      25%

$8000      28%

$10,000   32%

$12000    26%

$14000    39%

$16000    42%

$18000    45%

$20,000   48%

$22000    50%   

$26000    53%

$32000    55%

$38000    58%

$44,000   60%

$50000    62%

$60000    64%

$70000    66%

$80000    68%

$90000    69%

$100000  70%

Corporate Tax 48%

https://www.tax-brackets.org/federaltaxtable/1970

In 1987, the Federal Income Single Tax rate was reduced to include a top rate of 38.5% on taxable income over $54,000. .

Single Income Tax Rate in 1987 on taxable income.

$1            10%

$1800      15%

$16800    28%

$27,000   35%

$54,000   38.5%

Corporate Tax 46%

https://www.tax-brackets.org/federaltaxtable/1987

In 2004, the Federal Income Single Tax rate was reduced to include a top rate of 35% on taxable income over $319,100.

Single Income Tax Rates in 2004

$1              10%

$7150        15%

$29050      25%

$70350      28%

$146750    33%

$319100    35%

Corporate Tax 35%

https://www.tax-brackets.org/federaltaxtable/2004

Single Income Tax Rates in 2009

$1               10%

$8350         15%

$33950       25%

$82250       28%

$171550     33%

$372950     35%

Corporate Tax 21%

https://www.bankrate.com/finance/money-guides/2009-tax-bracket-rates.aspx

Norb Leahy, Dunwoody GA Tea Party Leader