Last month, the federal income tax celebrated a milestone birthday. On October 3, 1913, President Woodrow Wilson signed the first permanent income tax law. The 1913 law was enacted the same year that a constitutional amendment was passed giving Congress the authority to implement an income tax. The 1913 US tax code was 400 pages in its entirety. In 2012, the United States tax code was more than 73,000 pages long.
The length of the tax code is not all that has changed over the past century, however. In 1913, the first $20,000 of income was taxed at 1%. In today’s dollars, that would be approximately the first $464,000 of income. The marginal tax rate then increased by 1% increments until reaching a maximum of 7% on income that in today’s dollars would be more than $11 million.
Some experts also believe that a feeling of unhappiness with federal taxes became more commonplace in the 1960s and 1970s, even though tax rates were lower in those decades than during World War II and the early years of the Cold War.
As the centennial of the modern-day income tax code is marked, it is important to think about the future and to remember that the US Government remains committed to enforcing the federal income tax code. If you have unpaid income taxes, then it is important to get the help that you need from an experienced Oklahoma City tax lawyer today. Please call us at 800-721-7054 to schedule an initial consultation, and please download a FREE copy of our book, The Ultimate Survival Guide for IRS Problems, to learn more about what to do next.