By Jeff Haden, CBSNews.com
Today is the 70th anniversary of the bombing of Pearl Harbor. One day later the U.S. declared war on Japan, and four days later declared war on Germany and Italy.
Declaring war was one thing, paying for the war another. World War II had massive worldwide consequences, but it also changed forever the way Americans — and American businesses — are taxed.
I asked William T. Zumwalt, a CPA from Tulsa, Okla., to describe the impact of World War II on taxes, both then and now: If you think a 35% tax rate is high, try 94%.
The consequences of the attack on Pearl Harbor still reverberate today, in dozens of unseen ways — including how Americans pay the taxes that support the national security apparatus that works to prevent such an attack from happening again.
The Roosevelt administration had been gearing up to support the war effort long before the actual attack. When bombers struck on December 7, 1941, taxes were already high by historical standards. There were a dizzying 32 different tax brackets, starting at 10% and topping out at 79% on incomes over $1 million, 80% on incomes over $2 million, and 81% on income over $5 million.
In April 1942, just a few short months after the attack, President Roosevelt proposed a 100% top rate. At a time of "grave national danger," he argued, "no American citizen ought to have a net income, after he has paid his taxes, of more than $25,000 a year." (That's roughly $300,000 in today's dollars).
To read more, visit: http://www.cbsnews.com/8301-505143_162-57338266/how-would-you-feel-about-a-94-tax-rate/
No comments:
Post a Comment