1913 was a dreadful year for the United States.  Not only did the treacherous Federal Reserve begin operations, but also Congress and President Wilson established federal income taxes.  As you'll see below, 100 years ago the initial tax rates were rational, low and uncomplicated.  Unfortunately, like everything else government touches, today's tax system has become corrupt, complex and costly. 


1913 Nominal Dollar Tax Rates
Marginal             Income Level   
Tax Rate         Over           Up to    
1%                $0                  $20.000
2%                $20,000        $50,000
3%                $50,000        $75,000
4%                $75,000        $100,000
5%                $100,000      $250,000
6%                $250,000      $500,000
7%                $500,000+

Of course, when you factor in inflation, the 1913 tax rates are even more modest:

1913 Inflation Adjusted Tax Rates
Marginal             Income Level   
Tax Rate         Over           Up to          
1%                $0                   $453,292
2%                $453,292       $1,133,230
3%                $1,133,230    $1,699,846
4%                $1,699,846    $2,266,461
5%                $2,266,461    $5,666,152
6%                $5,666,152    $11,332,304
7%                $11,332,304+

Your ancestors somehow got by without federal programs like the TSA, War on Drugs and federal student aid.  Hopefully, in the next 100 years, legalizing freedom and small government will come back in vogue. 

Data courtesy of TaxFoundation.org