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Reports US

US stock market daily report (April 15, 2014, Tuesday)

April 16, 2014, Wednesday, 05:17 GMT | 00:17 EST | 09:47 IST | 12:17 SGT
Contributed by Millennium Traders

The "Revenue Act" was signed on April 15, 1861 by President Abraham Lincoln, imposing the first federal income tax of 3% on annual income exceeding $800. The move was an effort to fund the Civil War which received the stamp of approval from Congress. Language of the Act was broadly written to define income as a gain "derived from any kind of property, from any professional trade, employment or vocation carried on in the United States or elsewhere or from any source whatever." Per the U.S. Treasury Department in 2003, the $800 income from 1861 compared to approximately $16,000 minimum taxable income after adjustments for inflation.

Revenue Act of 1932 increased income tax rates across the board in the United States. Income tax rate on top incomes soared from 25% to 63%. Estate tax and corporate taxes were raised by nearly 15%.

United States Revenue Act of 1942 caused an increase in individual income tax rates, corporate tax rates rose including an increase in the top rate from 31% to 40% and reduced the personal exemption amount from $1,500 to $1,200 for married couples. Dependent exemption amount was reduced from $400 to $350, per dependent. The 35-60% graduated rate schedule for excess profits tax was replaced with a flat 90% rate. The 5% Victory tax on all individual incomes over $624 was created, with postwar credit. Medical expenses deductions was created by the Act.

Revenue Act of 1964, also known as the Tax Reduction Act, was a bipartisan tax cut bill signed by President Lyndon Johnson on February 26, 1964. The Act allowed for an across the board tax cut of nearly 20% with a deduction of corporate tax rates. The Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows:
- reduced top marginal tax rate from 91% to 70%
- reduced corporate tax rate from 52% to 48%
- phased-in acceleration of corporate estimated tax payments
- created minimum standard deduction of $300 + $100/exemption with total maximum of $1,000.

Here is how your tax dollars are spent as of tax year 2013, if you are married with one child and annual income of $50,000:

Social Security Tax Payment $3,100.00
Social Security Retirement, Survivors and Disability Insurance $3,100.00

Medicare Tax $725.00
Medicare Hospital Insurance $725.00

Description of disbursement and % of total income tax payment amount of $1,776.00

Health care 25.19% $447.37

National Defense 24.79% $440.27

Job and Family Security 18.77% $333.36

Net Interest 8.64% $153.45

Veterans Benefits 5.44% $96.61

Additional Government Programs 4.98% $88.44

Education and Job Training 2.85% $50.62

Immigration, Law Enforcement, and Administration of Justice 2.06% $36.59

Natural Resources, Energy, and Environment 1.92% $34.10

International Affairs 1.82% $32.32

Agriculture 1.15% $20.42

Science, Space, and Technology Programs 1.13% $20.07

Response to Natural Disasters 0.90% $15.98

Community, Area, and Regional Development 0.37% $6.57

Total income and payroll taxes you paid $5,601.00

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