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About Income Tax Day
Politics , United States
Ends: Feb 03, 2020
DESCRIPTION:
February 3, 1913, the Federal Income Tax came into existence in the United States when Delaware voted in favor of it. It was the 36th state and achieved the necessary majority.
The first income tax was levied in 1861 to pay for the US Civil War. That tax was 3% of total income over $800/year. It was repealed in 1872.
Prior to an income tax, other taxes supported the nation. These taxes included import/export taxes, taxes on charities, value added taxes and inheritance taxes. Many of these were eliminated, but have come back.
For 1913 the Federal income tax rate was 1% up to $20,000/year, with 0% on the first $3,000 (single) $4,000 (married). The average individual income was $800/year in 1913. This meant that poor and middle class families did not pay income tax in 1913.
In 1913 the Federal budget was spent on the following:
Pensions: <1%
Health Care: 12%
Education: 63%
Defense: 1%
Welfare: <1%
Protection: 23%
Interest: 0%
Note: Protection is police, fire and other public safety services
The 2018 budget is as follows:
Pensions: 25%
Health Care: 28%
Education: 3%
Defense: 21%
Welfare: 8%
Protection: 1%
Interest: 7%
Transportation: 2%
Government: 1%
Source: https://www.usgovernmentspending.com
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