The national income tax started as a 1% tax affecting less than 1% of all Americans. That was in 1913. Just over 100 years later, about 70% of America...
In 1913, the US national income tax began as a 1% rate that affected less than 1% of Americans. A century later, roughly 70% of Americans pay income tax, with top rates reaching 37%. The post draws a contrast as politicians propose a new wealth tax.
Background
- Anthony Pompliano ("Pomp") is a prominent crypto investor and commentator, formerly of Facebook and Snapchat, known for Bitcoin advocacy and skepticism toward government fiscal policy.
- The 1913 income tax was made possible by the 16th Amendment, which allowed the federal government to levy a direct income tax. The initial rate was 1% on income above $3,000 (about $95,000 today), affecting roughly 400,000 people.
- Today, the top marginal federal income tax rate is 37%, applied to individuals earning over $578,000 (2023 figures), and the tax base has expanded enormously.
- Pompliano's point is a historical-slippery-slope warning: a "wealth tax" (a recurring tax on net worth, not just income) proposed by some politicians, if enacted at a low rate, could similarly grow over time to burden a much larger share of the population.