But what about the United States? We never have had such high taxes, right?
One striking prescient issue is that tax rates always increased during times of war. Bush has systematically reduced the rates on the wealthiest taxpayers, as well as large corporations, during the last years, a period of time in which he considers us as a nation at war. But then again, it isn't a real war, is it? Bush certainly didn't think so. He didn't send enough troops, he didn't garner enough assistance from our allies, and he didn't plan for the post-war occupation. (Incompetence at it's finest.)In order to help pay for its war effort in the American Civil War, the United States government issued its first personal income tax, on August 5, 1861 as part of the Revenue Act of 1861 (3% of all incomes over US $800; rescinded in 1872). Other income taxes followed, although a 1895 Supreme Court ruling, Pollock v. Farmers' Loan & Trust Co., limited the sources of income that Congress could tax without apportionment. The Sixteenth Amendment to the United States Constitution removed the limitations, paving the way for the income tax to become the government's main source of revenue. In 1913 the tax rate was 1 percent on taxable net income above $3,000 ($4,000 for married couples), less deductions and exemptions. It rose to a rate of 7 percent on incomes above $500,000.
During World War I the top rate rose to 77 percent.
Following the war the top rate was scaled down (to a low of 25 percent).
During the Great Depression and World War II, the top income tax rate rose again, reaching 91% during the war; this top rate remained in effect until 1964.
In 1964 the top rate was decreased to 70% (1964 Revenue Act), and then to 50% in 1981 (Economic Recovery Tax Act or ERTA).
The Tax Reform Act of 1986 reduced the top rate to 28%, at the same time raising the bottom rate from 11% to 15% (in fact 15% and 28% became the only two tax brackets).
During the 1990s the top rate rose again, standing at 39.6% by the end of the decade.
In 2001 the top rate was cut to 35% and the bottom rate was cut to 10% by the EGTRRA, or Economic Growth and Tax Relief Reconciliation Act.
In 2003 the JGTRRA, or Jobs and Growth Tax Relief Reconciliation Act, was passed, expanding the 10% tax bracket and accelerating some of the changes passed in the 2001 EGTRRA.
Source: Wikipedia
