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When income tax was invented it in 1914 it was a lousy 1% tax
on people who made $2,000 or more a year in 1914. That is about $50,000 or $60,000 in 2013 dollars. The tax maxed out at 7 percent for people that made boatloads of money.
In the US Congress they actually debated about capping income tax at 10 percent, because at the time they thought that would be an outrageous tax rate. Of course today even if you make minimum wage the Feds take 10 percent or more from your paycheck in withholding taxes and FICA. Arizona's sales tax is just as outrageous. It is 9.6 percent and the second highest in the nation. I suspect that is one of the reasons the Founders passed the Second Amendment. Arizona’s sales-tax rate 2nd highest in U.S. The Republic | azcentral.com Mon Feb 11, 2013 4:00 PM Arizona has the second-highest combined sales-tax rate in the nation, according to a report from the Tax Foundation. Consumers pay 9.16 cents on each dollar, when local, county and state sales-tax rates are averaged out, according to the foundation, a Washington-based non-partisan tax research group. Only Tennessee, where the combined tax is 9.44 cents on the dollar, has a higher rate. However, Arizona will drop to 11th on the list when the state’s temporary one-cent-per-dollar tax expires June 1. Voters approved the tax in 2010 as a way to help the state deal with large budget deficits brought on by economic recession. The report underscores Arizona’s heavy reliance on the sales tax. At the state level, the sales tax accounts for half of the state’s general-fund revenue. Neighboring California charges a combined rate of 8.38 percent, ranking it eighth in the nation. The rates are lower in New Mexico (7.26 percent, ranking 16th) and Utah (6.67 percent, ranking 28th). Only three states have no state or local sales tax: Delaware, Montana and Oregon. |