War Revenue Act of 1917
From Wikipedia, the free encyclopedia
The United States War Revenue Act of 1917 greatly increased federal income tax rates while simultaneously lowering exemptions.
The 2% bracket had previously applied to income below $20,000. That amount was lowered to $2,000. The top bracket (on income above $2 million) was raised from 15% to 67%.
The act was applicable to incomes for 1917.
[edit] War Income Tax for Individuals
In addition to the Normal Tax and an Additional Tax levied against the net income of individuals in the Revenue Act of 1916 a "like normal" tax and a "like additional" tax were levied against the net income of individuals as shown in the following table.
| Revenue Act of 1917 War Income Tax on Individuals |
|||||
| Tax Rates from 1916 Act | Tax Rates from 1917 Act | ||||
| Net Income (dollars) |
Normal Rate (percent) |
Additional Rate (percent) |
Like Normal Rate (percent) |
Like Additional Rate (percent) |
Combined Rate (percent) |
| 0 | 2 | 0 | 2 | 0 | 4 |
| 5,000 | 2 | 0 | 2 | 1 | 5 |
| 7,500 | 2 | 0 | 2 | 2 | 6 |
| 10,000 | 2 | 0 | 2 | 3 | 7 |
| 12,500 | 2 | 0 | 2 | 4 | 8 |
| 15,000 | 2 | 0 | 2 | 5 | 9 |
| 20,000 | 2 | 1 | 2 | 7 | 10 |
| 40,000 | 2 | 2 | 2 | 10 | 16 |
| 60,000 | 2 | 3 | 2 | 14 | 21 |
| 80,000 | 2 | 4 | 2 | 18 | 26 |
| 100,000 | 2 | 5 | 2 | 22 | 31 |
| 150,000 | 2 | 6 | 2 | 25 | 35 |
| 200,000 | 2 | 7 | 2 | 30 | 41 |
| 250,000 | 2 | 8 | 2 | 34 | 46 |
| 300,000 | 2 | 9 | 2 | 37 | 50 |
| 500,000 | 2 | 10 | 2 | 40 | 54 |
| 750,000 | 2 | 10 | 2 | 45 | 59 |
| 1,000,000 | 2 | 11 | 2 | 50 | 65 |
| 1,500,000 | 2 | 12 | 2 | 50 | 66 |
| 2,000,000 | 2 | 13 | 2 | 50 | 67 |
[edit] Inflation-adjusted numbers
Corrected for inflation by CPI:
| 1917 dollars | 2005 dollars |
|---|---|
| $2,000 | $30,516 |
| $20,000 | $305,156 |
| $2,000,000 | $30,515,625 |
[edit] Notes
- ^ Facsimile from Statutes at Large
|
||||||||
