On October 3rd, 1913, President Wilson signed into law the income tax. The original rate was 1% on incomes over $20,000 and up to $50,000 per year. For those who made more than $500,000 per year, the top income tax rate was 6%!
Today's tax rates are a far cry from the original rates. In fact, with all the deductions that a person received in 1913, only ONE PERCENT of households paid income tax in 1913. Wow!