4/15 1913 vs 2010

[1970FuryConv]

This came from Wikipedia: in 1913 most of us would have paid 1% federal income tax (with no social security or medicare). What a difference a century makes!
Given the the derived figures from the consumer price index are correct, a $20000 income was minimum for the income tax to rise to 2%. $20000 is $440400 in today's $. Lots more take home pay in 1913.

Income tax table for individuals[edit]
A normal income tax and an additional tax were levied against the net income of individuals, as shown in the following table:

Revenue Act of 1913
Normal income tax and additional tax on individuals
38 Stat. 166 [12]

Income/ Normal rate/ Additional rate/ Combined rate
0 1% 0 1%
$20,000 1% 1% 2%
$50,000 1% 2% 3%
$75,000 1% 3% 4%
$100,000 1% 4% 5%
$250,000 1% 5% 6%
$500,000 1% 6% 7%
There was an exemption of $3,000 for single filers and $4,000 for married couples. Therefore, the 1% bottom marginal rate applied only to the first $17,000 ($374,400 in 2010 dollars) of income for single filers or the first $16,000 ($352,300 in 2010 dollars) of income for married filers (see also below the adjustments for inflation between 1913 and 2010 in the BLS table).

The ratio of top marginal rate to bottom marginal rate in 1913 was 7:1 (7%:1%). The last time a similar ratio was applicable was in 1980, when the ratio of the top rate to the bottom rate was 6.36:1 (70%:11%). In 1981, the top rate was reduced to 50%, and in 1986, it was reduced to 28% (the bottom rate rose from 11% to 15%). The 1986 change dramatically altered the ratio, from 6.36:1 to 1.87:1 (28%:15%). Today, the ratio is 3.96:1 (39.6%:10%).

Adjusted for inflation[edit]
Here are the rates adjusted for inflation by the average Consumer Price Index:

1913 dollars/ Inflation/ 2010 dollars Exempt
$3,000 2,200% $66,100
$4,000 2,200% $88,100*
$20,000 2,200% $440,400
$50,000 2,200% $1,101,000
$75,000 2,200% $1,651,600
$100,000 2,200% $2,202,100
$250,000 2,200% $5,505,300
$500,000 2,200% $11,010,700
All figures are rounded.

In 2010 dollars, the 2010 personal exemption ($3,650) and the standard deduction ($5,700) for single filers were together $9,350, only 14.1% of the 1913 exemption of $66,100 in 2010 dollars ($9,350/$66,100).

In 2010 dollars, the 2010 personal exemptions ($7,300) and the standard deduction ($11,400) for married couples filing jointly were together $18,700, only 21.2% of the 1913 exemption of $88,100 in 2010 dollars ($18,700/$88,100).
Revenue Act of 1913 - Wikipedia

 

[Mr onetwo]

And your point is?

 

[70bigblockdodge]

Start a business of your own and your tax load will be reduced by a big margin.

 

[1970FuryConv]

And your point is?

It just thought it was an interesting study of taxes and inflation, so I shared it.

 

[Mr onetwo]

it is interesting, but incomplete and flawed. Think of the infrastructure that existed in 1911 and just think of the highway system that exists today(as decrepit as it is due to neglect).All paid for with taxes.

 

[1970FuryConv]

it is interesting, but incomplete and flawed. Think of the infrastructure that existed in 1911 and just think of the highway system that exists today(as decrepit as it is due to neglect).All paid for with taxes.

I understand what your saying, but the question of whether we get value worth the money we put into government is a huge issue that is further complicated by the fact that we don't pay the full cost. Instead, we use massive deficit spending and dump the cost on future generations.

The date of OP was April 15, which is normally IRS tax due date. As a married person, I thought it was interesting that for the vast majority of my life I have made less that $88100, the threshold for 1% tax if the system from 1913 had continued until now. April 15 would not have been a concern, because I would never have owed taxes.

Whether we get value for our current tax money is another question. We could argue a lot about the value of big government, but I think the truth is, like it or not, we're stuck with it. According the site below, IRS alone has over 78000 employees and the federal government has over 2 million civilian employees excluding USPS and military. Federal Employees By State

The question we don't address is: how do we limit government to functioning within the $ we actually pay?

 

[Mr onetwo]

That is the question and you are right...none of this is going away in our lifetime. I just wish we could get better value for our dollars.