100 Years Of Income Tax

BROUGHT TO YOU BY CEO DOMO Did you know. .com the top tax bracket in 946 the US was PREME COURT OF THE Actually, the Supreme Court orginally ruled the Income Tax unconstitutional. But when the income tax was first instituted, the top bracket was 7% and you had to make $2M to qualify.. the rough equivalent of $112B today. STATES ..and Congress repealed it after the Civil War (what would they do with the money anyway, right?) SEAL OF once 94% (not even our friend Warren Buffett would make the cut) Income Tax as we know it began with the Revenue Act of 1913..which means that whoever is inaugurated in February will be just in time to celebrate 100 Years of the Income Tax (What the Average Joe and the Average CEO have been Paying Through the Years) Average American Tax Bracket Average CEO Tax Bracket Average American Income Average CEO Salary Lowest Tax Bracket Highest Tax Bracket $75,000 75% $o $25,000 25% $50,000 50% Income $100,000 Tax Bracket 0% 100% Tax Code is 0 pages long 1913 9 1916 o The word "lawful" removed from the definition of taxable income 1920 Tax Revenue: $AM 75% of the US population falls in the lowest tax bracket 1924 1928 The tax code includes 35 brackets! (mostly 1% increments) 1932 1936 Make $5m to pay 79% 1940 Tax Revenue: $2 58 1944 Make $200k to pay 94% 1948 Average American moves out of the lowest tax bracket 1952 1956 1960 BROUGHT TO YOU BY 1964 1968 DOMO 1972 Tax Revenue: $146B 1976 1980 Highest tax rates for both average Americans and CEOS CEO Salary: 1984 Make $80k to pay 50% $117,000 1988 $148,000 Tax Revenue: $689B 1992 $342,000 Make $90k to pay 31% 1996 $399,000 17,000P- 2000 $829,000 Tax code hits |pages 2004 $685,000 <25% of the US population Tax Revenue: $1.3T falls in the lowest tax bracket 2008 $582,000 2012 $622,000 Base income tax What's in store for the next 100 Tax rate on the avg. American income has been within 3% of 25% since 1944 (excluding rates have only been raised 5 times years? .the story starts Nov. 6 in 100 years 1975-85) BROUGHT TO YOU BY Sources: LEIL DOMO IRS.gov | National Taxpayers Union | TaxFoundation.org | CNN Money Chicago Booth University | UK Institute for Fiscal Studies .com Images courtesy of Whitehouse.gov, Justice.gov, Biography.com, Wiki Commons