The Obama Administration yesterday backed down from its plan to tax the earnings on 529 savings accounts, a kind of saving account for higher education under section 529 of the tax code. At Bloomberg, Richard Rubin and...
- Tax Facts for Independence Day 2012
Tax Facts for Independence Day 2012
Americans will celebrate the 236th anniversary of American independence on July 4th this year. As students of history will remember, one of the chief complaints of the colonists against the British government in 1776 was unfair and burdensome taxation. With that in mind, the Tax Foundation presents a few facts for Independence Day that highlight the modern American tax system.
Top marginal income tax rate in 1913, the first year the modern income tax was levied: 7%
Inflation-adjusted annual income to qualify for the top rate in 1913: $11,332,304
Top marginal rate for tax year 2011: 35%
Minimum income needed to be subject to top rate in 2011: $379,150
Highest-ever marginal tax income rate: 94%
Years during which highest-ever marginal rate was levied: 1944-1945
Level to which it was lowered after in 1946: 91%
Number of days from the beginning of the year until Tax Freedom Day in 1900: 22
Number of days from the beginning of the year until Tax Freedom Day in 2012: 107
Inflation adjusted income required to be in the top 1% of earners in 1980: $219,970
Income required to be in the top 1% of earners in 2009: $343,927
Share of all federal income taxes paid by the top 1% in 1980: 19.05%
Share of all federal income taxes paid by the top 1% in 2009: 36.73%
Percentage of federal income taxes paid by the bottom 50% of all taxpayers in 1980: 7.05%
Percentage of federal income taxes paid by the bottom 50% of all taxpayers in 2009: 2.25%
Sources: IRS, Tax Foundation analysis.
The Tax Foundation is a nonpartisan research organization that has monitored fiscal policy at the federal, state and local levels since 1937. To schedule an interview, please contact Richard Morrison, the Tax Foundation’s Manager of Communications, at 202-464-5102 or firstname.lastname@example.org.
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