The first income tax only taxed the very very wealthy as it started with income over $??? at a tax rate of ? percent.
$??? is $??? in 2000 dollars.
The income tax was incrementally expanded by the US Congress? and now applies to almost 2/3 of the population. The lowest earning workers ($20,000 in 2000) pay no income taxes as a group and actually get a small subsidy from the federal government because of child credits and the [earned income credit]?. Notably however, lower income individuals pay a disproportionate share of payroll taxes for [Social Security]?, Medicare?, [Unemployment Insurance]?, and the like. These payroll taxes can amount to 7-10% of every dollar and since they do not show up on tax forms their impact is less noticed.
The upper 25 percent of wage earners (incomes over $50,000 in 2000) pay most of the income tax.
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