This page was last modified on 10 January 2019, at 04:21. Congressional Research Service, Library of Congress. It gives a brief definition of each concept and its relationships. The last time a similar ratio was applicable was in 1980, when the ratio of the top rate to the bottom rate was 6.36:1 (70%:11%).
In 1981, the top rate was reduced to 50%, and in 1986, it was reduced to 28% (the bottom rate rose from 11% to 15%). In 1913, The Revenue Act or the Underwood Act or the Underwood Tariff or the Underwood Tariff Act or the Underwood-Simmons Act or, simply, the Tariff Act (Federal Income Tax) was signed into law (re-imposed) by President Woodrow …
Wilson summoned a special session of the Congress in April 1913. The Act passed the House 281-139 on May 8, 1913. Therefore, the 1% bottom marginal rate applied only to the first $17,000 ($374,400 in 2010 dollars) of income for single filers or the first $16,000 ($352,300 in 2010 dollars) of income for married filers (see also below the adjustments for inflation between 1913 and 2010 in the BLS table).
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This is a giant online mental map that serves as a basis for concept diagrams. Past that, the first $395,545 would be taxed at a 1% rate. 114, 3. The international economic picture was soon upset by the outbreak of World War I. American products were in great demand throughout the world, making the question of protectionism moot. panies, and insurance companies; (3) The term "domestic" when applied to a corporation or part- "Domestic." [6], The Revenue Act of 1913 reduced the average import tariff rates from approximately 40 percent to approximately 25 percent.[9]. Revenue Act of 1913 Last updated November 20, 2019 Oscar Underwood. In 1981, the top rate was reduced to 50%, and in 1986, it was reduced to 28% (the bottom rate rose from 11% to 15%). The Act, which was declared to be constitutional later that year by the Supreme Court in Brushaber v. Union Pacific Railroad, provided: The incomes of couples exceeding $4,000, as well as those of single persons earning $3,000 or more, were subject to a 1% tax.
In 2010 dollars, the 2010 personal exemptions ($7,300) and the standard deduction ($11,400) for married couples filing jointly were together $18,700, only 21.2% of the 1913 exemption of $88,100 in 2010 dollars ($18,700/$88,100). 16,, October 3, 1913), re-imposed the federal income tax after the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich Tariff Act of 1909. Revenue Act of 1913, Section II, B., 38 Stat. That when used in this Act-(1) The term "person" includes partnerships and corporations, as "erson" well as individuals; (2) The term "corporation" includes associations, joint-stock com- 'C'oPoraton. [10], The Revenue Act of 1913 restored a federal income tax for the first time since 1872. Underwood quickly shepherded the revenue bill through the House of Representatives, but the bill won approval in the United States Senate only after extensive lobbying by the Wilson administration.
The last time a similar ratio was applicable was in 1980, when the ratio of the top rate to the bottom rate was 6.36:1 (70%:11%). The Revenue Act of 1913, also known as the Underwood Tariff or the Underwood-Simmons Act (ch. Wilson spoke only briefly but made it clear that tariff reform was needed and that he would not be a party to a repeat of the embarrassment of the thwarted reform of 1894. 114, October 13, 1913), re-imposed the federal income tax after the ratification of the Sixteenth Amendment and lowered basic tariff rates from 40% to 25%, well below the Payne-Aldrich Tariff Act of 1909. The average rate was approximately 26%. Working with progressive Republicans, Congressional Democrats won passage of the Revenue Act of 1916, which reinstated the federal estate tax, established a tax on the production of munitions, raised the top income tax rate to fifteen percent, and raised the corporate income tax from one percent to two percent. Angry constituents wrote to their representatives and demanded tariff reform.
The most recent effort to tax incomes, the Wilson-Gorman Tariff of 1894, had been declared unconstitutional by the Supreme Court because the tax on dividends, interest, and rents had been deemed to be a direct tax not apportioned by representation.
The bill also included a one percent tax on the net income of all corporations, superseding a previous federal tax that had only applied to corporate net incomes above $5,000. Everything past that up through $1,479,545 would be … The burden was clearly on the shoulders of the Democrats, as they controlled both houses of Congress for the first time in 18 years. [7], However, the top marginal income tax rate of 7% in the 1913 Act was mentioned in Ronald Reagan's remarks on the South Lawn of the White House on October 22, 1986, when he said that the top rate was for "the equivalent of multimillionaires today.
Image Credit: pixfeeds.com (defunct) & buzzle.com. All the information was extracted from Wikipedia, and it's available under the Creative Commons Attribution-ShareAlike License. The Underwood-Simmons measure vastly increased the free list, adding woolens, iron, steel, farm machinery, and many raw materials and foodstuffs.