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Federal Income Tax Celebrates 100th Anniversary

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  • Description

    FBN’s Gerri Willis looks back on the history of the federal income tax.

  • Duration 2:54
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Well most of us anyway spent yesterday celebrating the Super Bowl but you might not have realized there was another momentous occasion to mark.

The 100 birthday at the federal income tax now where -- this dreaded form -- taking our money come from.

Time for a little history lesson.

It all started would any back in 1861.

When Abraham Lincoln needed to raise some money immediately to fight the civil war and the first income -- was born.

Was a flat tax those making over 800000 dollars a year or 20000 in today's money they were tax so whopping 3% rate.

The next year congress deciding -- it really liked this idea that people would just send money -- way they introduced a sliding scale.

Now those making about 101000 dollars or 229000.

Now would be tax that 5% and the idea of taxing the rich was born.

But guess what.

The tax was repealed an 1866.

Unbelievable congress decided they didn't want free money any -- That is until 1994 when they try to bring it back at this time the Supreme Court stepped in calling the tax unconstitutional.

So a Republican yes -- Republican offered a constitutional amendment and 100 years ago yesterday.

Delaware became the 36 state to ratify it and -- locked the income tax was official.

So before you go that cursing the lawmakers from 1913.

The income tax looked a lot different than now take a look at fat.

For starters this is what the could tax -- look like a century gap was 38 pages that's it.

Today it's nearly 74000.

Pages with a top tax rate of nearly 40% compared to -- talked X rated seven.

7% that is back then and that only hit people making a half million dollars or eleven and a half million dollars today.

In 1913 about fifty million people were employed so their incoming tax revenue.

Which just over 28 million bucks sort 655000000.

And 2012 dollars.

Today about a 150 million people are in the labor force and they paid more than a trillion trillion with a T.

Just last year alone.

Even if you tripled the revenue from 1913 so the number of taxpayers would be cool they would still only have paid about two billion dollars.

And for those tax lovers out there meaning Democrats.

I do you know that during the last 100 years things have been much worse than they are now including.

During World War II.

Where the highest tax rate was 94% meaning almost all of what people -- earned.

-- that is went to uncle -- but just because it was worse doesn't mean it's good now.

-- -- the ridiculous amount of revenue the -- brings it every year President Obama and Harry Reid still want more.

100 years is certainly a milestone but this is one birthday.

-- activists celebrate.

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