Where did taxes come from and how have they changed? These slides highlights some of the important changes in our tax code throughout history. Brought to you by Intuit CPA Select, where your taxes are done by our accountants – online. https://turbotaxcpaselect.intuit.com

1. Of The Tax Code
The History

2. Brought to you by:

3. The law creates the nation’s first
income tax:
Incomes between
$600-$10k = 3% tax
Incomes between
$10k+ = 5% tax
1862
President Abraham Lincoln signs a
revenue producing measure to
help pay for expenses caused by
the Civil War.

4. View as an interactive
1872
The income tax
was repealed.

5. View as an interactive
1894
Wilson Tariff Act revives the
income tax, and the Bureau of
Internal Revenue is created.
was the highest
possible tax rate.
5%

6. View as an interactive
1906
The first 1040 was introduced 3
pages long (it is now over 200)
Income Tax Rates:
50k= 1%
75k= 2%
100k= 3%
250k= 4%

7. View as an interactive
1918
Filing deadline is March 15.
Internal revenue collections
pass the billion-dollar mark.

8. View as an interactive
1930
The tax rate had
climbed to 25%.
1932
The tax rate
jumped to 63%.
1936
The tax rate jumped
again to 79%.

9. View as an interactive
1945
More than 60 million
americans pay tax.
Internal revenue
collections reach
$43 billion.

10. View as an interactive
1976
President Ford becomes the
first to publicly release his
personal income tax return.
A few years after, President
Nixon became mired in a
scandal over whether he paid
enough in taxes.
Every president since Ford
has released his annual claim.

11. View as an interactive
1981
Congress enacted the largest tax
cut in U.S. history, approximately:
$750 billion
over six years.
The tax reduction, however, was
partially offset by two tax acts, in
1982 and 1984, that attempted
to raise approximately
$265 billion.

12. View as an interactive
1986
President Reagan signs the Tax
Reform Act, the most significant
piece of tax legislation in 30 years.
The top tax rate on individual income
was lowered from 50% to 28%, the
lowest it had been since 1916!

13. View as an interactive
1992
Taxpayers are allowed to
file returns electronically.

14. View as an interactive
1997
President Clinton passes act
which cut taxes by another
$152 billion,
including a cut in capital-gains
tax for individuals, a $500 per
child tax credit, and tax
incentives for education.

15. View as an interactive
2001
President Bush signs a series of
major tax cuts. The largest being
the Economic Growth and Tax
Relief Reconciliation Act of 2001.
It was estimated to save taxpayers
$1.3 trillion
over 10 years.

16. View as an interactive
2006
The highest possible
tax rate was:
35%

17. View as an interactive
2012
In 2012, President Obama
has announced that he plans
to raise the two top tax rates
from 35% to 39.6% and from
33% to 36%.

18. View as an interactive
2012
In 2012, President Obama
has announced that he plans
to raise the two top tax rates
from 35% to 39.6% and from
33% to 36%.
View the interactive timeline