Internal Revenue Code of 1986
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The Tax Reform Act of 1986 redesignated the Internal Revenue Code of 1954 as the Internal Revenue Code of 1986 and made numerous other amendments. The '86 Act, however, did not change the overall structure of the Code. See Internal Revenue Code.
[edit] Internal Revenue Code of 1954
The 1954 Code was enacted by the United States Congress as Chapter 736, Pub.L. 83-591, and became law on August 16, 1954, succeeding the Internal Revenue Code of 1939. As enacted, the 1954 Code was published as Volume 68A of the United States Statutes at Large. The 1954 Code temporarily extended the Revenue Act of 1951's 5 percentage point increase in corporate tax rates through March 31, 1955, increased depreciation deductions by providing additional depreciation schedules, and created a 4 percent dividend tax credit for individuals.
References to the Internal Revenue Code in the United States Code and other statutes of Congress subsequent to 1954 generally mean Title 26 of the Code as amended. The basic structure of the Title 26 remained the same until the enactment of the comprehensive revision contained in Tax Reform Act of 1986, although of course individual provisions of the law were changed on a regular basis.
[edit] The 1954 Code and progressivity
With respect to the Federal income tax on individuals, the 1954 Code imposed a progressive tax with 24 income brackets applying to tax rates ranging from 20% to 91%. For example, the following is a schedule showing the Federal income tax rate imposed on each level of taxable income of a single (unmarried) individual under the 1954 Code:
| Income level | Tax rate |
|---|---|
| up to $2,000.00 | 20% |
| $2,000.01 - $4,000.00 | 22% |
| $4,000.01 - $6,000.00 | 26% |
| $6,000.01 - $8,000.00 | 30% |
| $8,000.01 - $10,000.00 | 34% |
| $10,000.01 - $12,000.00 | 38% |
| $12,000.01 - $14,000.00 | 43% |
| $14,000.01 - $16,000.00 | 47% |
| $16,000.01 - $18,000.00 | 50% |
| $18,000.01 - $20,000.00 | 53% |
| $20,000.01 - $22,000.00 | 56% |
| $22,000.01 - $26,000.00 | 59% |
| $26,000.01 - $32,000.00 | 62% |
| $32,000.01 - $38,000.00 | 65% |
| $38,000.01 - $44,000.00 | 69% |
| $44,000.01 - $50,000.00 | 72% |
| $50,000.01 - $60,000.00 | 75% |
| $60,000.01 - $70,000.00 | 78% |
| $70,000.01 - $80,000.00 | 81% |
| $80,000.01 - $90,000.00 | 84% |
| $90,000.01 - $100,000.00 | 87% |
| $100,000.01 - $150,000.00 | 89% |
| $150,000.01 - $ 200,000.00 | 90% |
| $200,000.01 or more | 91% |
[edit] Source
- Internal Revenue Code of 1954, Pub.L. 83-591, 68A Stat. 5, enacted 1954-08-16 (modified from text of the statute).
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