Somewhat counter intuitively, the income tax at the beginning was generally well received. It was championed by Democrats with only one Republican voting for the 1913 Revenue act. However, it was supported by Populists and Progressives including William Jennings Bryan and later Theodore Roosevelt. It was seen by the vast majority of Americans as a Fairness issue with the wealthy paying their fair share.
Significance:
- Less than 1% of population actually paid any income taxes
- For vast majority of Americans it had no impact
- Shift from regressive taxation on tariffs and excises
- Seen as a Progressive tax mainly on the wealthy
- Marginal Tax Rate 1% over $3,000 ($97,000 in 2025), and $4,000 ($129,000 in 2025) for married couples. The top marginal tax rate was 7% for incomes above $500,000 ($16.15M in 2025 dollars)
