Taxing Situation

The Sixteenth Amendment, which legalized the income tax, became law in 1913. (The income tax had been officially declared unconstitutional by the Supreme Court in an 1890s case.)

The original tax brackets were 1% on income above $3000 with a surtax of 6% on income above $500,000. Since the average salary was under $1000, most didn't pay any income tax, and the vast majority who did only paid 1%.

Then, in 1914, came the Emergency Internal Revenue Tax Act, temporarily raising taxes--and we've been in a state of constant emergency since.

A couple years later, on this day in 1916, President Woodrow Wilson signed the Emergency Revenue Act, doubling tax rates and throwing in an estate tax to boot.

What's my point?  Oh, nothing.