Thursday, November 15, 2012

Be careful when you start punishing the rich

Go here to see a PDF of a 1913 income tax form

I found it on Libertarian Reddit.

Your typical 1913 wage earner didn't have to pay any income taxes.  Adjust for inflation, and the rates look like this:

•1% on $470,000 - $1.17million

•2% on $1.17 - 1.75 million

•3% on $1.75 - 2.34 million

•4% on $2.34 - 5.84 million

•5% on $5.84 to 11.7 million

•6% on all incomes over $11.7 million

Here's the rub...."It's easy to convince people to support this kind of progressive revenue system.  Joe LunchBox never dreams of earning enough money to have to worry about this tax! It's just making those greedy ten-thousandaires pay their fair share. The average annual US income in 1913 was somewhere between $1,300 and $3,000 depending on who you ask."

"Fast forward: The income tax kicks in at $8,700 annual income and tops out at an income of $388,350... in 2012 dollars. Over the last 100 years, the rate brackets have inexorably inched their way down, while salaries, wages, and all prices increase with inflation; slowly pushing everyone into the next tax bracket without any real gain in their purchasing power."

The other moral of this story is fairly simple....  No matter how much money they take in, they're going to spend it.  Usually on very bad things. 

No comments: