The story of how the U.S. wound up with the income tax is the story of two wars, a Supreme Court justice on his death bed, and Donald Duck.
This story posted yesterday by National Public Radio is interesting on several levels. The government needed everyone to pay income taxes to finance World War II, and used Donald Duck paying $13 tax on income of $2,501 as an example for all. I'm curious,
Do the math: This is a combined income and social security tax rate of less than 2%.
Please help me with my questions ...
If we were able to pay for World War II and social security with taxes of less than 2% on fairly average wages for the time, what are we getting for the higher tax rates the average income worker is paying today?
When the war ended, should the income tax for the average wage earner ended as well?
What was your reaction to watching Donald Duck enthusiastically respond to the radio announcer appealing to his sense of patriotism and duty?
I can't wait to read your answers and to repond to them!