Top Income Tax Rate 465% Higher 100 Years after Tax Introduced
The income tax was considered by Homer S. Cummings, chairman of the Democratic National during Woodrow Wilson’s presidency, as one of the most notable achievements of the Democratic Party. This was made possible through the ratification of the 16th Amendment, passed on Feb. 3, 1913 – 100 years ago.
Following the 16th Amendment, the Revenue Act of 1913 was passed and signed into law on Oct. 3, 1913. And so, the income tax was made a permanent part of American culture.
In 1913, the highest income earners tax rate was 7 percent. That is dramatically different from today’s highest earners, especially after the latest increase in income taxes.
As of Jan. 2013, the top income rate is 39.6 percent, after the recent spike in income taxes at the beginning of 2013. This is a 465 percent increase from the original 1913 level of 7 percent.
Even with this huge increase, the Democrats and media alike continue to call for raising taxes – specifically on those who make more then $250,000 a year. Ironically, there are at least seven journalists who are millionaires themselves who are calling for such hikes.