Someone turned 100 a week ago, and somehow I don’t think you celebrated it.
“People who complain about taxes can be divided into two classes: men and women.”
According to last year’s presidential election exit polls, most voters want lower taxes. For a government run by the voters, this does not seem to be going with the popular vote. Even Senator John Kerry runs from taxes by docking his 7 million dollar yacht outside of the state’s reach, saving himself near half a million.
How did this pass if so many people hate taxes?
Well when the income tax was introduced it would only tax 1% of the population. So the majority got together and said, “Let’s take money from that 1%”.
How has the income tax aged?
For starters, the original tax code was 400 pages long. At 100 years old, it has 73,954 pages. ….Who has read all of that?
Highest Income Tax rate in 1913, 7 percent. The 2013 tax rate high, 39.6 percent. But it has seen much worse.
Did you know that the Original income tax was repealed?
During war times, Lincoln instituted revenue taxes to help fund the war. 10 years later, in 1872, the tax was repealed based on the violation to the constitution. The 16th Amendment was added in 1913, the year our current income tax was born.
“Income taxes punish the very things we want more of: productive work, risk-taking and success. We can’t say this enough: A tax on income is the price you pay for working; a tax on profits, the price you pay for success; and a tax on capital gains, the price you pay for taking risks that work out.” – Steve Forbes
Denmark holds the highest income tax rate at 60%.
Perhaps that it make you feel a little better about your current tax rate to know that 18 other nations have a higher income tax than the US.
The average American contributes $5 for ever Billion that the Government spends. This, of course, varies by your income as the bulk of the money come from our graduated income tax. And yet we still are not paying enough to cover the Governments spending habits. Perhaps we are not too far off from meeting that Denmark high tax.
Over 90% will e-file taxes in 2013
Perhaps one of the most innovative moves in recent years with regards to the income tax is e-filing. But don’t be too impressed with the government, as “The IRS has partnered with various private industry companies” to make e-filing a reality.
So are you wishing the income-tax a Happy 100th Birthday?