July 4th: Celebrate Independence Day with some tax facts
July 4th is upon us, complete with fireworks and celebratory picnics in honor of America's independence. Also in honor of American independence, the Reformed Broker has forwarded along some lovely tax facts. Enjoy!
Happy July 4th from the Tax Foundation, celebrate with these factoids below...
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.
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