Of The Tax CodeThe History

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The law creates the nation’s first income tax:

Incomes between

$600-$10k = 3% tax

Incomes between

$10k+ = 5% tax

1862

President Abraham Lincoln signs a revenue producing measure to help pay for expenses caused by the Civil War.

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1872

The income tax was repealed.

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1894

Wilson Tariff Act revives the income tax, and the Bureau of Internal Revenue is created.

was the highestpossible tax rate.

5%

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1906

The first 1040 was introduced 3 pages long (it is now over 200)

Income Tax Rates:

50k= 1% 75k= 2% 100k= 3% 250k= 4%

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1918

Filing deadline is March 15.

Internal revenue collections pass the billion-dollar mark.

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1930

The tax rate had climbed to 25%.

1932

The tax rate jumped to 63%.

1936

The tax rate jumped again to 79%.

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1945

More than 60 million americans pay tax.

Internal revenue collections reach

$43 billion.

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1976

President Ford becomes the first to publicly release his personal income tax return.A few years after, President Nixon became mired in a scandal over whether he paid enough in taxes.

Every president since Ford has released his annual claim.

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1981

Congress enacted the largest tax cut in U.S. history, approximately:

$750 billionover six years.

The tax reduction, however, was partially offset by two tax acts, in 1982 and 1984, that attempted to raise approximately

$265 billion.

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1986

President Reagan signs the Tax Reform Act, the most significant piece of tax legislation in 30 years.

The top tax rate on individual income was lowered from 50% to 28%, the lowest it had been since 1916!

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1992

Taxpayers are allowed to file returns electronically.

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1997

President Clinton passes act which cut taxes by another

$152 billion,including a cut in capital-gains tax for individuals, a $500 per child tax credit, and tax incentives for education.

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2001

President Bush signs a series of major tax cuts. The largest being the Economic Growth and Tax Relief Reconciliation Act of 2001. It was estimated to save taxpayers

$1.3 trillionover 10 years.

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2006

The highest possible tax rate was:

35%

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2012

In 2012, President Obama has announced that he plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.

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2012

In 2012, President Obama has announced that he plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.

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