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1913 Form 1040 - the good old days...
Old 04-14-2013, 08:17 AM   #1
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1913 Form 1040 - the good old days...

Federal income taxes are only 100 years old. Here's where it started (link below), the whole thing is 4 pages with only 1 page of instructions! The Federal tax code is now 73,000 pages (according to CBS). Progress

http://www.irs.gov/pub/irs-utl/1913.pdf
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Old 04-14-2013, 08:32 AM   #2
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OMG thats funny. I love the tax table - goes from 1% to 6% in 1% intervals. 6% top tax rate - my how times have changed !
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Old 04-14-2013, 12:12 PM   #3
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OMG thats funny. I love the tax table - goes from 1% to 6% in 1% intervals. 6% top tax rate - my how times have changed !
Yes, and given 100 years of inflation, as well as the general deduction, I wonder what percentage of the population actually had to pay any taxes. Probably a very, very tiny proportion. If I remember right, I believe my dad once told me that his annual income in 1960, when first married, was less than $6000 from full time, year round employment...so it seems that $3000 in 1913 would have been a pretty big number.

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Old 04-14-2013, 12:44 PM   #4
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Originally Posted by Rambler View Post
Yes, and given 100 years of inflation, as well as the general deduction, I wonder what percentage of the population actually had to pay any taxes. Probably a very, very tiny proportion. If I remember right, I believe my dad once told me that his annual income in 1960, when first married, was less than $6000 from full time, year round employment...so it seems that $3000 in 1913 would have been a pretty big number.

R
From the inflation calculator:
Quote:
What cost $6000 in 1960 would cost $45878.45 in 2012. What cost $3000 in 1913 would cost $68637.93 in 2012.
The Inflation Calculator
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Old 04-14-2013, 12:53 PM   #5
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See

http://taxfoundation.org/sites/taxfo...913_2013_0.pdf

For tax brackets in inflation adjusted terms (2012 dollars.) Back in 1913, you had to make more than 463K in 2012 dollars to have to pay federal income taxes.

Also looking over the tables, 1963 was the worst tax year for someone with high income, and 1990 was the best post-WWII tax year for someone with high income.
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Old 04-14-2013, 01:34 PM   #6
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We too saw that on CBS Sunday Morning today. We got o Mass on Saturday evening so as to not miss CBSSM.

Very interesting piece. And, initially, if I recall, only 7% of the population was paying taxes. Did I get that factoid right?

Edited to add a link to the CBS story:

http://www.cbsnews.com/8301-3445_162...the-form-1040/
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Old 04-14-2013, 01:36 PM   #7
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It looks like in 2010 dollars the standard exemption for singles would have been $66,100, and for married filers $88,100. This is much higher than today's median, so few people would have even had to worry about a 1% tax. And, that means my marginal federal tax rate would have been 1% and my effective tax rate would have been about a half a percent. Plus state taxes, of course, if they existed. That is much better than my current marginal rate of 35% and effective rate over 30% (I think)...plus CA taxes at a marginal of 11.something and effective rate of around 10%.

I wonder if the value of the additional government is worth the additional tax I am paying for it...

R


1913 Dollars Inflation - BLS 2010 Dollars Exempt - 1913 Exempt - 2010
$3,000 2,200% $66,100* Single Filers $3,000 Singles $9,350 or 14.1%*
$4,000 2,200% $88,100* Married Filers $4,000 Marrieds $18,700 or 21.2%*
$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
Note: All figures are rounded. In current dollars, the one 2010 personal exemption ($3,650) + standard deduction ($5,700) for single filers are together at $9,350, but a fraction, i.e., 14.1%, of the 1913 exemption of $66,100 in 2010 dollars (i.e., $9,350/$66,100). In current dollars, the two 2010 personal exemptions ($7,300) + standard deduction ($11,400) for married couples filing jointly are together at $18,700, but a fraction, i.e., 21.2%, of the 1913 exemption of $88,100 in 2010 dollars (i.e., $18,700/$88,100).
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Old 04-14-2013, 01:55 PM   #8
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The previous post was from here:

Revenue Act of 1913 - Wikipedia, the free encyclopedia

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Old 04-14-2013, 04:00 PM   #9
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The bigger question to ME is how in the dickens did the "several States" ever give that authority to the federal gub-ment.n Prior to the ratification of the 16th amendment, the US Supreme Court had consistently held that a tax on income was unconstitutional. The 16th was a doozy. The states really blew THAT one, IMHO.
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Old 04-14-2013, 05:00 PM   #10
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........
I wonder if the value of the additional government is worth the additional tax I am paying for it...

R ..........
Right, as long as none of these are beneficial:
  • Social Security spending
  • Medicare spending
  • Defense spending
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Old 04-14-2013, 05:37 PM   #11
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Definitely beneficial, but SS and Medicare have their own revenue streams. Somehow I have trouble believing that the additional 34% is all defense...there's gotta be some bacon in there somewhere.

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Old 04-14-2013, 10:14 PM   #12
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Bacon ? did someone say bacon ?!?
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Old 04-15-2013, 08:13 AM   #13
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Definitely beneficial, but SS and Medicare have their own revenue streams. Somehow I have trouble believing that the additional 34% is all defense...there's gotta be some bacon in there somewhere.

R
Excellent point. I never realized how large a percentage of total revenue the payroll tax was.
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