the current 1040 with instructions and all supporting schedules stands at 214 pages.
|
1913 Nominal Rate
|
1913 Adjusted for Inflation to Today
|
||
|
Tax Rate
|
Tax Brackets
|
Tax Rate
|
Tax Brackets*
|
|
1.0%
|
$0 to $20,000
|
1.0%
|
$0 to $465,212
|
|
2.0%
|
$20,000 to $50,000
|
2.0%
|
$465,212 to $1,163,030
|
|
3.0%
|
$50,000 to $75,000
|
3.0%
|
$1,163,030 to $1,744,545
|
|
4.0%
|
$75,000 to $100,000
|
4.0%
|
$1,744,545 to $2,326,061
|
|
5.0%
|
$100,000 to $250,000
|
5.0%
|
$2,326,061 to $5,815,152
|
|
6.0%
|
$250,000 to $500,000
|
6.0%
|
$5,815,152 to $11,630,303
|
|
7.0%
|
$500,000 and more
|
7.0%
|
$11,630,303 and more
|
Today’s
highest rate is 39.6%...in 1913 there were not 2 classes of taxpayer (single or
married) like there is today.
|
Tax Rate
|
2013 Taxable Income
|
|
|
Single Filers
|
Married Joint Filers
|
|
|
10.0%
|
$0 to $8,925
|
$0 to $17,850
|
|
15.0%
|
$8,925 to $36,250
|
$17,850 to $72,500
|
|
25.0%
|
$36,250 to $87,850
|
$72,500 to $146,400
|
|
28.0%
|
$87,850 to $183,250
|
$146,400 to $223,050
|
|
33.0%
|
$183,250 to $398,350
|
$223,050 to $398,350
|
|
35.0%
|
$398,350 to $400,000
|
$398,350 to $450,000
|
|
39.6%
|
$400,000 and up
|
$450,000 and up
|
In 1963 if you were married, filing
jointly, and earned between $100,000 and $120,000 your marginal tax rate was
75% … if you made in excess of$400,000 your rate was 91%! Imagine working 332
days out of 365 to pay your taxes.
In 1913 the population was a mere 97
million…in 2013 the US population has grown to close to 315 million… that is an
average of 3.1 million per year since 1913.
The national debt in 1913 was 2.9
billion…today it stands at 16.8 trillion and growing by 3.86 billion per day…If
every US citizen today paid $53,443 the national debt would be retired.
Cost of a stamp in 1913 was 02 cents…currently
46 cents …coffee was 30 cents a pound and bacon was 25 cents a pound. And my
favorite… pork chops were only 18 cents a pound!
Unemployment in 1913 was
4.3%...current unemployment is 7.7%
Life expectancy in 1913 was only 55 years
where now it is nearly 80 years old. The U.S. started collecting Social
Security tax in 1937 after President Roosevelt Sign the Social Security Act in
1935. The Social Security age in 1940 was 65 years old (the first year benefits
could be collected)…today the age is 67 …only 3 years more than in 1940 while
the average life expectancy has risen approximately 23 years.
The number of Americans over 65 in
1940 was 9 million… at the last census that number was over 40 million.
In 1913 there were 1.1 million
registered automobiles in the US…(one per every 88 citizens)… in 2013 there are
255 million registered automobiles (one per every 1.25 citizens) ...almost every
state has a requirement for taxing personal autos through either property tax,
registration fees or fuel taxes and surcharges.
Currently there are 132 million (63%)
homeowners in the US…in 1913 approximately only 46% of the population owned the
home they lived in…The average household in 1913 was 4.5…today it is 2.4 …less
than half…The average square feet of living space in a new home built in 1913 was
900…in 2013 the average square footage is 2100… more than double ….(down from
2520 sq. ft. in 2007)
In 1913 Only 16% of homes had electricity
and 20% had toilets inside the home.
A house that sold for $7,000 in 1913
($80,000 -inflation adjusted for todays dollars) would sell for $175,000 in
2013 (considering location and condition as mitigating factors)
A deduction for any interest paid on
borrowed money was included in the 1913 tax code…(which included mortgages)…but
unlike present times 98% of all homeowners had no mortgage…no credit cards,
student loans, etc. It was mostly a cash society. In 1986 with the tax reform
only the interest paid on primary and secondary home mortgages was kept as a
deduction…the MID deduction is now under examination by Congress to further
limit use by homeowners.
In 1818 Illinois was the first state
to enact a property tax… in 1868 North Carolina joined the ranks who taxed residents
who owned property in the State. During the depression years, many properties
went into foreclosure not because of default on mortgages, but due to the
owners inability to pay the property taxes.
Disclaimer: All the above data is
accurate to the best of my ability to Google…
My prayers go out to the victims and
the families of those who were injured in the horrific Boston Marathon bombings
yesterday. Our world is now a dangerous place with enemies both foreign and
domestic. I pray for peace throughout the world, but I am also realistic in understanding
there are some who do not say the same prayer… For those who wish to bring
terror upon the American people…When they find you …(and they will find you)… I
truly wish peace upon your soul.
Eddie Brown- April 16 2013
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