Do today's historically low income tax rates surprise you?
Here is over 100 years of the top marginal federal income tax rate in the United States.
Since 1920, this rate has varied dramatically, but one thing stands out: today's rate of 37.0% sits well below the long-term average of 57.8%.
Historically speaking, we are in a low-tax environment.
Key Takeaways
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Over A Century Of Tax Rates: This chart shows the top marginal federal income tax rate in the United States since 1920.
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A Look At The Data: Today's top marginal rate of 37.0% is more than 20 percentage points below the long-term average. After peaking above 90% in the 1940s and 1950s, rates have remained lower for decades.
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Planning Implications: Although taxes may feel high today, the historical data suggests the top marginal rate is well below its long-term average.
