It’s tax time again, and I’m sure you like I am, are complaining about how much you’ve paid in federal income taxes this year.
If you you’re paying a lot, check out what the tax rates were 70 years ago!
In 1944 and 1945, the top income bracket rate was 94%!
Keep in mind this is not paying 94% of all your earned income in taxes, just the income falling into that highest percentage, but regardless of how wealthy you are, only able to keep 6% of your earnings sucks.
The lowest bracket at the same time during the 1944-45 period had to pay 23% tax.
The tax rate for the high end in 2015 is 39.6% and the low end is 10% in 2015, so maybe we don’t have as much to complain about.
On another note, in 1913, when the sixteenth amendment was ratified, allowing taxes to be collected by the federal government, the tax rate was 1% for the lowest bracket, and the tax rate was 7% on earnings over $500,000, adjust for inflation that is $11 million in today’s dollars, now that I wouldn’t mind!
The following chart only extends back to 1970, but the $200,000 required to fall into the top tax bracket in 1970, is the equivalent of a little more than $1.2 million dollars.
In comparison, the top tax bracket for 2015 is $464,850.
The dip in 1988 is because there was an establishment of 28% top marginal rate for all income in 1988.