In 1783, the Revolutionary War debt was $75 million. Congress agreed to charging Tariffs on Imports to fund the US government and pay down the war debt. Later in 1789 the US government added a Whisky tax. In 1795, the US paid off the $2 million war debt. The US Income Tax began in 1862 to pay for the Civil War.
US Income Tax Rate History 1862-2013
This is a comprehensive history of US tax rates The data begins in 2013 and shows the marginal tax rate and tax brackets for individual and joint filings. It does not include tax rates from 2017 forward.
After the 1913 data, it shows the same data for 1895 to 1912. It then shows the data back to 1862.
https://files.taxfoundation.org/legacy/docs/fed_individual_rate_history_nominal.pdf
Comments
The income tax begins in 1862 to support the Civil War, but is not as onerous as the national debt that would grow as the war unfolded. In 1862 the tax rate was established at 0% on earnings up to $600, 3% of earnings up to $10,000 and 5% of earnings over $10,000 . By 1870 it moved to 2.5% of earnings over $2000.. From 1873 to 1893 there was no individual income tax. In 1894 income tax returned with 2% of earnings over $4000.
From
1895 to 1912 there was no individual income tax. By 1912, the Civil War $2.7
billion national debt was finally paid off. This prompted the Federal
Government to drastically increase tax rates to prepare for World War I.
https://files.taxfoundation.org/legacy/docs/fed_individual_rate_history_nominal.pdf
In 1913, income tax returned permanently with 1% of $20000 and tax rates up to 7% for income over $500,000. In 1915 tax rates rose to 3% on income of $20000 to 40000 and a top rate of 15% on incomes above $2 million. In 1917 tax rates rose to 4% of $2000 income and a top rate of 67% of $2 million.In 1918 tax rates rose to 12% of $4000 and a top rate of 77% of $1 million income.
In 1919, income tax rates went to 8% of $4000 and 73% of $1 million. In 1922 the tax rate was 8% of $4000 with a top rate of 58% of $200 thousand. In 1924 tax rates moved to 4% of $4000 with a top rate of 46% of $500 thousand. In 1925 tax rates moved to 3% of $4000 with a top rate of 25% of $100 thousand. In 1932 tax rates moved to 8% of $4000 with at top rate of 63% of $1 million. In 1936 tax rates remained 8% of $4000 with a top rate of 79% of $5 million.
In
1941 tax rates moved to 12% of $4000 with a top rate of 81% of $5 million. In
1942 tax rates moves to 22% of $2000 with at top rate of 88% of $200 thousand.
In 1944 tax rates moved to 25% of $2000 with a top rate of 94% of $200
thousand. In 1946 tax rates moved to 22% of $2000 with a top rate of 91% of
$200 thousand. In 1951 tax rates moved to 22.4% of $2000 with a top rate of 91%
of $200 thousand.
In
1952 tax rates moved to 24.6% of $2000 with a top rate of 92% of $200 thousand.
In 1954 rax rates moved to 22% of $2000 with a top rate of 91% of $200
thousand. In 1955 tax rates moved to 22% of $4000 with a top rate of 91% of
$400 thousand. In 1964 tax rates moved to 16.5% of $1000 with a top rate of 77%
of $400 thousand. In 1965 tax rates moved to 15% of $1000 with a top rate of
70% of $200 thousand. In 1977 tax rates moved to 14% of $3200 with a top rate
of 70% of $203200. In 1979 tax rates moved to 14% of 3400 with a top rate of
70% of $215400.
https://files.taxfoundation.org/legacy/docs/fed_individual_rate_history_nominal.pdf
In 1981 Ronald Reagan became President and started his tax reform program in 2 phases. The top bracket had remained above 70% from 1914 to 1982, but inflation had soared from bread costing 2 cents to costing $2.
In
Phase 1, Reagan moved the top rate from 70% to 50%.
In 1982 tax rates moved to down to 12% of $3400 with a top rate 50% of $85000. In 1983 tax rates moved down to 11% of % of $3400 with a top rate of 50% of $109400. In 1984 tax rates moved to 11% of $3400 with a top rate of 50% of $162400. In 1985 tax rates moved to 11% of $3540 with a top rate of 50% of $169020. In 1986 tax rates moved to 11% of $3670 with a top rate of 50% of $175250.
In Phase
2 Reagan took the top rate from 50% to 38.5%.
In 1967 tax rates moved to 15% of $3000 with a top rate of 38.5% of $90 thousand. In 1968 tax rates moved to 15% of $29750 with a top rate of 28% of amounts over $29750. In 1989 tax rates moved to 15% of $30950 witn a top rate of 28% over $30950. In 1990 tax rates moved to 15% of $32450 with a top rate of 28% over $32450.
George
HW Bush raised taxes in 1991.
In 1991 tax rates moved up to 15% of $34000 with a top rate of 31% of $82150. In 1992 tax rates moved up to 15% of $35800 with a top rate of 31% of $86500.
In
1993 Bill Clinton became President. In 1993 tax rates moved up to 15% of $36900
with a top rate of 39% of $250 thousand. In 1994 tax rates moved to 15% of
$39000 with a top rate of 39.6% of $250 thousand. In 1995 tax rates moved to
15% of $69000 with a top rate of 39.6% of $256,500. In 1996 tax rates moved to
15% of $39000 with a top rate of 39.6% of $256500. In 1997 tax rates moved to 15% of $41200 with
a top rate of 39.6% of $271,050.
In 1998 tax rates moved to 15% of $42350 with a top rate of 39.6% of $278450. In 1999 tax rates moved to 15% of $43050 with a top rate of 39.6% of $283,150. In 2000 tax rates moved to 15% of $43850 with a top rate of 39.6% of $288350.
George W Bush lowered taxes. In 2001 tax rates moved to 15% of $45200 with a top rate of 39.1% of $297,350. In 2002 tax rates moved to 15% of amounts over $12.000 with a top rate of 38.6% of $307,050. In 2003 tax rates moved to 15% of amounts over $15000 with a top rate of 35% of $311,950. GW Bush added $10T to the National Debt with wars in Afghanistan and Iraq.
Barak Obama maintained taxes with no changes. Obama added $10T to the National Debt with a failed Green Energy stimulus and excessive Federal Spending.
From 2004 to 2013 tax rates followed the same pattern as outlined above, remaining at 15% of increasing taxable income amounts witn a 35% top rate.
https://files.taxfoundation.org/legacy/docs/fed_individual_rate_history_nominal.pdf
Comments
In 2017, Donald Trump lowered all taxes on individuals and corporations significantly. The top individual tax bracket moved down to 22% and the corporate tax dropped to 21%.The top individual tax rate dropped from 35% to 28%. Trump imposed tariffs on imports from China but added $4T to the National Debt with Covid support due to Democrat State shut-downs and vaccine mandates.
By 2023, Joe Biden has added another $6T to the National Debt with another failed attempt to stimulate Green Energy to support the Climate Change Hoax.
US History contains a chronical of American families’ reactions to taxation. American colonists fought for independence to preserve their independence and end government abuse. We are currently suffering from government abuse at all levels. North America was identified by England in the 1500s as a source of much needed timber to build ships and buildings. It later became a source of agricultural goods like tobacco and cotton. Tariffs encouraged the development of US-based manufacturing. The US was able to repay our civil war debts with temporary income taxes. In 1913, Marxists were able to pass a permanent income tax to pay off World Wars 1 and 2. For decades, the government managed to keep the US National Debt below $5 trillion, but after 2008, the debt grew to $33 trillion. The US federal debt needs to be reduced by cutting unnecessary spending by returning powers to the States, using total economic isolation instead of war and ending Biden’s suicidal policies.
Norb Leahy, Dunwoody GA Tea Party Leader
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