“Well, that sounds like a lot of money until you consider that what that really means is that in today’s dollars, someone would have to make $754,518.18 per year to pay that $2,515.06 in income tax.”
I don’t understand that statement; doesn’t sound right.
A person I know pays a lot more than $2,515.06 in income taxes on a lot less income than $754,000.
I concur.
The difference in the value of the money from then to now— that is what is being stated. That is to say- inflation since 1913 has changed the valuation of money earned (net income) as well as the value of the tax that must be paid on it.
Of course there has never again been a 1% tax on any net income since 1913. 100$ paid against the net income allowed vs 30K a year income in 1913.... is increased to 2515.06 on what would be income of $754,518.18 if it was the income of today, assuredly NOT taxed at 1%, that is for certain. It is an illustration of the absurd inflation (deflation in what money can buy) which has developed- involving the actual income tax system put in place and all the changes to it since that time.
For example, do any here know that Income Withholding was supposed to STOP after the end of WWII (which instituted it)? Congress NEVER did rescind the withholding— they continue to get the money up front from employers and businesses. No one directly feels this- except employers- and the stupid public thinks it’s great to get a “refund”.
Good questions jeffersondem. Jefferson would have certainly raised hell about this- much as he tried against Hamilton’s National Bank run by stockjobbers holding farmers for ransom in the money marketplace. The middlemen rule... they think.
In 1913, making $30,000 of income would require you to pay $100 in taxes. Adjusting over 25 times for the currency devaluation we call inflation, that is the 2024 equivalent of someone making $754,518.18 paying $2,515.06 in tax. Someone making that much today will pay a lot more in taxes.
Back when Dollar was worth a Dollar, and 4 Cents.
He’s saying that IF the 1913 rates AND brackets, applied, but adjusting for inflation, that someone making 750 K would pay 2.5K in taxes. Not complicated.
The tax rate was only 1%.