Professor Mark J. Perry's Blog for Economics and Finance
This post has become an annual tradition at CD as the tax deadline approaches. Page 1 of the original IRS 1040 income tax form from 1913 appears above. There were only four pages in the original 1040 form, including two pages of worksheets, the actual 1040 form above, and only one page of instructions, view all four pages here. In contrast, just the current 1040 instructions, without any forms, runs 179 pages. Individual income tax rates started at 1% in 1913, and the maximum marginal income tax rate was only 7% on incomes above $500,000 ($11.2 million in today's dollars). The personal exemption was $3,000 for individuals ($67,000 in today's dollars) and $4,000 for married couples ($89,400 in today's dollars), meaning that very few Americans had to pay federal income tax since the average income in 1913 was only about $750. The Tax Foundation has historical federal income tax rates for every year between 1913 and 21011 here.
The good old days when government was financed with a 40 percent tariff. Bring them back.
With all the caterwauling about "some people pay no income tax" you hear today, it is forgotten that the income tax originally was not intended to be a tax on the middle-class.That said, I favor radical tax simplification. An elimination of corporate and individul income taxes, and a 10 percent flat national sales tax (perhaps exempting food) makes sense to me, plus elimination of several federal departments, such as Education, USDA and Commerce, and demobilization of our military.We can make a better economy for America, if we have the guts to make some cuts.
In 1913, people died of old age at 50-something-years-old. As someone in that age group, I think the good old days are now.
"In 1913, people died of old age at 50-something-years-old. As someone in that age group, I think the good old days are now"...Yeah Walt G it is for the government (local, state, & federal) since now they have more time to extort more money from individuals...
Here is an interesting chart, that probably will never run in most "right-wing" websites.http://en.wikipedia.org/wiki/United_States_federal_executive_departmentsBy employment, largest federal departments:Defense: 3,000,000Veterans Affairs 235,000Homeland Security 208,000Treasury 115,000Justice 112,000Energy 109,000USDA 109,000We also haveHUD 10,000HHS 67,000Labor 17,000Are not these figures astonishing? So, you want to cut federal bureaucrats? You want to cut federal emnployment? You want to whack federal pensions?So do I, bubelah, so do I. Let's start cutting!
"Here is an interesting chart, that probably will never run in most "right-wing" websites.wiki-worthless"...ROFLMAO!Wiki, 'right wing'?!?!LMAO!Want to cut the numbers of people leeching off the government?Then start with the people working at the 2,125 Federal assistance programs...
Juandos-I am for cutting those programs to whihc you linked...and federal employment.Crickey, the vast majority of the federal employees are going to draw a civilian (fat) or military (extra fat) pension.I'll die with my boots on, paying taxes for their sweet retirement.
Hey Benji,Your boyfriend is working on a deficit reduction package. When I first heard about it I thought it was a good thing he's now finally bowing to the Tea Party instead of some worthless dictator. However, it's becoming clear he's going to try to raise taxes on the "wealthy"and some piddly other crap. Will there be a hue and cry from Benji in the same way he goes after Paul Ryan?Betting not. Love conquers all.
"Your boyfriend is working on a deficit reduction package"....Well Paul you're absolutely right but of course being the modern neo-commie Obama is this reduction will be carried on the backs of the usual suspects...I can't help but wonder Paul if Obama will want the same targeted suspects to also finance the fix in the flawed Obamamobiles too?
Paul-You need to see a therapists about your Obama-obsession.Check out these stats: By employment, largest federal departments:Defense: 3,000,000Veterans Affairs 235,000Homeland Security 208,000Treasury 115,000Justice 112,000Energy 109,000USDA 109,000We also haveHUD 10,000Labor 17,000HHS 67,000Where do you cut? Where does Ryan cut? Each one of these federal employees can vote, and they have families that vote too.Obama? He's looking forward to retirement, on a federal pension, like all these employees above.Fat city, baby, fat city.
Benji,I would cut everywhere. The question is where will your boyfriend cut? Not where his parasite constituents live, that's for sure. He's going to go after "the wealthy" and probably call it a day.
"The question is where will your boyfriend cut? Not where his parasite constituents live, that's for sure"....From the Washington Times' F. Vincent Vernuccio: Obama administration covers up union welfare programThe Obama administration is more than a year late in releasing an important report on federal government union costs. Clauses within collective bargaining agreements require that the government pay some federal workers for union activities - using tax dollars. This practice, known as "official time," is documented annually in the Office of Personnel Management's (OPM)Official Time Usage in the Federal Government Report. Unfortunately, the Obama administration has not released any official time statistics since taking office; 2008 is the latest information available...(skip)In 2008, federal employees logged 2,893,922 hours for union work while still receiving a paycheck from Uncle Sam. This cost taxpayers nearly $121 million for work only benefiting government unions...(there's more)
Paul-I like your use of the word "parasite." Che is Dead is using it more too. I think I popularized the word on this site.I am glad Paul Ryan has a handle on things. We can hope the employment figs at the federal agenices shown go into sudden contraction. Of course, many of the largest agenices have employees in Ryan-land. We will see if he has the "guts for cuts" when he is Prezzy in 2012. Did I just predict a Ryam prezzy in 2012. Yes I did. "Guts for cuts": I made that up just now. Not bad, eh? If I become a Ryam supporter, then who will hate?
Benji,You popularized the very common word "parasite?" Seriously? I'm pretty sure most of us here have had a handle on the Democrats' core constituency for decades now. You, on the other hand, jumped on the Hopeandchange train to nowhere in '08 and will probably in '12.
About Me Name: Mark J. Perry Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. Perry is currently on sabbatical from the University of Michigan and is a visiting scholar at The American Enterprise Institute in Washington, D.C.
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