The 1924 Revenue Act Set a Top Marginal Tax Rate of 46 Percent

I was browsing through old editions of the Federal Register—who doesn’t, after all?—and learned that the Revenue Act of 1924 set a tax rate of 43 percent on incomes over $100,000 and 46 percent on incomes over $500,000. That’s about the equivalent of $1.5 million and $7 million, respectively, today, compared to a top marginal rate of 37 percent in current law. It’s remarkable, isn’t it, that even a conservative Republican administration in the era of small government taxed the rich more than we do today? It’s also worth noting that the 1924 Act set up 43 tax brackets. Apparently it never occurred to them to invent a dumb canard about lots of brackets having anything to do with the complexity of filing a return.

Oh, and there’s also this. Just thought I’d post it for no particular reason.

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Clara Jeffery, Editor-in-Chief

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