Tax Timeline

"Unquestionably, there is progress. The average American now pays out almost as much in taxes as he formerly got in wages." ~
H.L. Mencken

1861 – first income tax levied to pay for Civil War

1911 – First state income tax is enacted (Wisconsin)

1932 – top marginal federal tax rate increased to 63%

1932 – The Revenue Act of 1932 was enacted which led to the first federal gas tax

1937 – the first Social Security taxes were levied on wages

1952 – top marginal federal income tax raised to 92%

1954 – FICA taxes raised to 2%

1966 – FICA taxes raised to 4.2%

1979 – Alaska becomes the ONLY state to EVER repeal their income tax

1990 – combined FICA taxes increased to 7.65% (15.3% if self-employed)

2002 – Federal Spending surpasses $2 trillion

2012 – top marginal tax rate in California raised to 13.3%, the highest in the US

2018 – S.A.L.T. (State and Local Taxes) deduction capped at $10,000

    Read Next: HOW are you taxed? Part 1

    *Full disclosure I am NOT a CPA nor a certified financial advisor (or any other alphabet soup designation) and all of the information in this section is provided solely for educational purposes and does NOT constitute legal or tax advice. EVERYONE should consult their own financial advisors, CPAs and tax strategists to compile their own individualized plans.*


    Sign up for the Nexus Newsletter and Blog! (we will not spam you nor sell your info)