Evolution of taxes
Did you know that the highest federal income tax rate was 91% in 1950? Or that in 1933 there were 55 tax brackets? Knowing how U.S. taxes have evolved can help you put in perspective today’s debate over the future of tax rates.
Tax rates over time
Top tax rates used to be much higher than today’s 35%. However, they also only affected American couples earning the equivalent of more than $1 million today.
The number of tax brackets we have in America has gone through some changes. In 1862, there were two tax brackets. In 1933, there were 55. Here’s a look at how the tally has changed since the 1950s.