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US State Income vs. Federal Income

US tax policy changed during the WWI era. It was all quite local until 1917. https://taxfoundation.org/data/all/federal/historical-income-tax-rates-brackets/ Also, you'll notice that even at the state level, income tax was rare. Income tax has historically been ill-regarded. Until 1905 most of the state of New York was funded through alcohol taxes: https://www.jstor.org/stable/1882558 They then passed a mortgage tax and a stock tax to counter the rising costs of a growing population.

Every government level has the power to tax in the US, and they all find v... (read more)

1Elle Griffin1yThank you so much!