Tax Rates

The United States started taxing income in 1913. At that time the highest tax bracket was 7%, while now, 98 years later,  it is 35%. What is amazing about the rate is not that it has gone up 28% but that is has come down from an all time high of 90% in 1945. In fact it was over 70% from 1936 - 1970. The problem with the amout that Americans pay for income taxes is not the rate but rather the base on which it is computed. In 1913 you paid a 7% tax on earnings over $500,000. Today you pay a 35% tax on earnings over $373,651. By the way $500,000 in 1913 would be worth $11,012,929 today.