With respect to the Federal income tax on
individuals, the 1954 Code imposed a progressive tax with 24 income brackets
applying to tax rates ranging from 20% to 91%. For example, the
following is a schedule showing the Federal marginal income tax rate
imposed on each level of taxable income of a single (unmarried)
individual under the 1954 Code: Assuming the wages are 18.75 times higher today as in 1954.
| Income level | Tax rate | 2008 PPC Adjusted Income
|
|---|---|---|
| up to $2,000.00 | 20% | up to $37,500.00 |
| $2,000.01 - $4,000.00 | 22% | $37,500 - 75,000 |
| $4,000.01 - $6,000.00 | 26% | $75,000 - 112,500 |
| $6,000.01 - $8,000.00 | 30% | $112,500 - 150,000 |
| $8,000.01 - $10,000.00 | 34% | $150,000 - 187,500 |
| $10,000.01 - $12,000.00 | 38% | $187,500 - 225,000 |
| $12,000.01 - $14,000.00 | 43% | $225,000 - 262,500 |
| $14,000.01 - $16,000.00 | 47% | $262,500 - 300,000 |
| $16,000.01 - $18,000.00 | 50% | $300,000 - 337,500 |
| $18,000.01 - $20,000.00 | 53% | $337,500 - 375,000 |
| $20,000.01 - $22,000.00 | 56% | $375,000 - 412,500 |
| $22,000.01 - $26,000.00 | 59% | $412,500 - 487,500 |
| $26,000.01 - $32,000.00 | 62% | $487,500 - 600,000 |
| $32,000.01 - $38,000.00 | 65% | $600,000 - 712,500 |
| $38,000.01 - $44,000.00 | 69% | $712,500 - 825,000 |
| $44,000.01 - $50,000.00 | 72% | $825,000 - 937,500 |
| $50,000.01 - $60,000.00 | 75% | $937,500 - 1,125,000 |
| $60,000.01 - $70,000.00 | 78% | $1,125,000 - 1,312,500 |
| $70,000.01 - $80,000.00 | 81% | $1,312,500 - 1,500,000 |
| $80,000.01 - $90,000.00 | 84% | $1,500,000 - $1,687,500 |
| $90,000.01 - $100,000.00 | 87% | $1,687,500 - $1,875,000 |
| $100,000.01 - $150,000.00 | 89% | $1,875,000 - $2,812,500 |
| $150,000.01 - $ 200,000.00 | 90% | $2,812,500 - $3,750,000 |
| $200,000.01 or more | 91% | $3,750,000 or more |
