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1. Rate structure
Individual Cumulative September March October
brackets value of brackets 8, 1916 3, 4, 1917
(000 omitted) (000 omitted) 1917
First $10 $10 1% 1.5% 2%
Next 10 20 1 1.5 2
Next 10 30 1 1.5 2
Next 10 40 1 1.5 2
Next 10 50 1 1.5 2
Next 20 70 2 3 4
Next 30 100 2 3 4
Next 100 200 2 - 3 3 - 4.5 4 - 6
Next 200 400 3 - 4 4.5 - 6 6 - 8
Next 200 600 4 - 5 6 - 7.5 8 - 10
Next 200 800 5 7.5 10
Next 200 1,000 5 7.5 10
Next 500 1,500 6 9 12
Next 500 2,000 6 9 12
Next 500 2,500 7 10.5 14
Next 500 3,000 7 10.5 14
Next 500 3,500 8 12 16
Next 500 4,000 8 12 16
Next 500 4,500 9 13.5 18
Next 500 5,000 9 13.5 18
Next 1,000 6,000 10 15 20
Next 1,000 7,000 10 15 20
Next 1,000 8,000 10 15 20
Next 1,000 9,000 10 15 22
Next 1,000 10,000 10 15 22
Next 10,000 20,000 10 15 25
Next 30,000 50,000 10 15 25
Over 50,000 10 15 25
2. Exemptions $50,000 $50,000 $50,000
1. Rate structure
Individual Cumulative February June February
brackets value of brackets 24, 1919 2, 26, 1926
(000 omitted) (000 omitted) 1924
/1/
First $10 $10 1% 1% 1%
Next 10 20 1 1 1
Next 10 30 1 1 1
Next 10 40 1 1 1
Next 10 50 1 1 1
Next 20 70 2 2 2
Next 30 100 2 2 2
Next 100 200 2 - 3 3 - 4 3
Next 200 400 3 - 4 4 - 6 4
Next 200 600 4 - 6 6 - 9 5
Next 200 800 6 - 8 9 - 12 6
Next 200 1,000 8 12 7
Next 500 1,500 10 15 8
Next 500 2,000 12 18 9
Next 500 2,500 14 21 10
Next 500 3,000 14 21 11
Next 500 3,500 16 24 12
Next 500 4,000 16 24 13
Next 500 4,500 18 27 14
Next 500 5,000 18 27 14
Next 1,000 6,000 20 30 15
Next 1,000 7,000 20 30 16
Next 1,000 8,000 20 30 17
Next 1,000 9,000 22 35 18
Next 1,000 10,000 22 35 19
Next 10,000 20,000 25 40 20
Next 30,000 50,000 25 40 20
Over 50,000 25 40 20
2. Exemptions $50,000 $50,000 $100,000
1. Rate structure
Individual Cumulative June 6, May 11, August
brackets value of brackets 1932 1934 31, 1926
(000 omitted) (000 omitted)
First $10 $10 1% 1% 2%
Next 10 20 2 2 4
Next 10 30 3 3 6
Next 10 40 4 4 8
Next 10 50 5 5 10
Next 20 70 7 7 12
Next 30 100 7 9 14
Next 100 200 9 12 17
Next 200 400 11 16 20
Next 200 600 13 19 23
Next 200 800 15 22 26
Next 200 1,000 17 25 29
Next 500 1,500 19 28 32
Next 500 2,000 21 31 35
Next 500 2,500 23 34 38
Next 500 3,000 25 37 41
Next 500 3,500 27 40 44
Next 500 4,000 29 43 47
Next 500 4,500 31 46 50
Next 500 5,000 33 48 53
Next 1,000 6,000 35 50 56
Next 1,000 7,000 37 52 59
Next 1,000 8,000 39 54 61
Next 1,000 9,000 41 56 63
Next 1,000 10,000 43 58 65
Next 10,000 20,000 45 60 67
Next 30,000 50,000 45 60 69
Over 50,000 45 60 70
2. Exemptions $50,000 $50,000 $40,000
FOOTNOTE TO TABLE
/1/ These rates were retroactively reduced by Revenue Act of
1926 to the level of 1919 rates.
END OF FOOTNOTE
Sources: Statistics of Income for 1934; Revenue Act of 1935.
Table 2 Federal and State death and gift tax collections, 1915-1938 (In thousands of dollars)
Federal State
Percent of Percent of
Collections total taxes Collections total tax
and customs revenue
1915 - - 28,784 7.9
1916 - - 30,748 8.4
1917 6,077 0.6 40,038 9.8
1918 47,453 1.2 41,432 9.0
1919 82,030 2.0 47,889 9.0
1920 103,636 1.8 64,647 9.2
1921 154,043 3.1 65,703 9.0
1922 133,419 3.9 70,503 8.2
1923 126,705 4.0 75,193 8.2
1924 102,967 3.1 83,697 8.2
1925 108,940 /*/ 3.5 91,171 8.2
1926 119,216 /*/ 3.5 96,052 7.6
1927 100,340 2.9 112,191 8.3
1928 60,087 1.8 132,599 8.8
1929 61,897 1.7 148,592 9.2
1930 64,770 1.8 180,794 10.1
1931 48,078 1.7 182,653 10.3
1932 47,422 2.5 143,746 8.8
1933 34,310 1.8 126,359 8.4
1934 113,138 3.8 92,240 5.3
1935 212,112 5.8 100,783
1936 378,840 9.7
1937 (est) 273,900 5.5
1938 (est) 383,200 5.7
Federal
Estate Tax Gift Tax
1933 29,693 4,617
1934 103,985 9,153
1935 140,441 71,671
1936 218,781 160,059
1937 (est.) 249,000 24,900
1938 (est) 358,200 25,000
FOOTNOTE TO TABLE
/*/ Includes gift tax collections amounting to $7,518,000 in
1925 and $3,175,000 in 1926.
END OF FOOTNOTE
Sources: (Secretary of the Treasury, ANNUAL REPORT, 1936; Joint
Committee on Internal Revenue Taxation, FEDERAL AND STATE DEATH
TAXES, 1933; Dpt. of Commerce, FINANCIAL STATISTICS OF STATES, 1931;
National Industrial Conference Board, COST OF GOVERNMENT IN THE
UNITED STATES, 1936; Treasury Dpt., COLLECTIONS FROM SELECTED
STATE-IMPOSED TAXES, 1936.
Table 3 The Federal estate tax: Summary data showing number of taxable returns, gross and net estate, and tax liability (Amounts in thousands of dollars)
Year Taxable returns
of
filing Number Gross estate Net estate
1925 10,642 2,689,972 1,621,008
1926 10,470 3,150,664 1,951,969
1927 6,961 2,850,985 1,735,840
1928 6,116 3,181,719 1,943,429
1929 6,758 3,566,208 2,268,323
1930 7,028 3,808,324 2,376,973
1931 6,364 3,717,069 2,327,319
1932 5,104 2,447,095 1,391,569
1933 6,464 1,751,870 798,246
1934 7,981 2,025,412 882,712
1935 8,655 2,197,941 1,027,774
Year Total tax before credit
of Under Under 1932
filing Total 1926 Act Act as amended
1925 96,930
1926 198,057
1927 100,532 82,906
1928 135,014 134,769
1929 165,414 165,335
1930 152,391 152,391
1931 182,202 182,202
1932 84,006 84,006
1933 87,725 36,471 51,254
1934 129,150 43,693 85,457
1935 197,672 56,281 141,391
Year Total tax before credit
of Under Under 1932
filing Total 1926 Act Act as amended
1925 86,223
1926 101,324
1927 40,931 27,344
1928 40,561 40,351
1929 43,303 43,232
1930 39,003 39,003
1931 44,540 44,540
1932 22,364 22,364
1933 59,429 8,175 51,254
1934 95,228 9,771 85,457
1935 153,753 12,363 141,391
Source: United States Treasury Department, Statistics of
Income, 1924-1934.
Table 4 Specific exemptions afforded by State death taxes /1/ (as of February 1, 1937)
$75,000 and over $50-000 - $75,000
Alabama $100,000 Illinois $60,000
Florida 10,000 Iowa 70,000
Georgia 100,000 /*/ Mississippi 50,000
New Hampshire all /*/
Rhode Island 75,000
Texas 75,000
$25,000 - $50,000 Less than $25,000
California $41,000 Arizona $14,000
Colorado 40,000 Arkansas 12,000
Delaware 26,000 Connecticut 10,000
Kentucky /2/ 25,000 Idaho 24,000
Maine 30,000 Indiana 22,000
Massachusetts /3/ 30,000 Louisiana 15,000
Michigan 40,000 Maryland /3/ 100
Minnesota 30,000 Montana 21,500
Missouri 30,000 New Jersey 15,000
Nebraska 30,000 New Mexico 10,000
New York 30,000 North Carolina 17,000
North Dakota 27,000 Ohio 13,500
South Dakota 30,000 Oklahoma 15,000
Vermont 30,000 Oregon 10,000
Washington 30,000 Pennsylvania 500
West Virginia /2/ 25,000 South Carolina 22,500
Wyoming 30,000 Tennessee 10,000
Utah 10,000
Virginia 15,000
Wisconsin 19,000
Those exemptions are in fact reduce to $100,000 through the
operation of the differential estate tax designed to absorb the 80
percent credit for taxes paid to States provided by the 1926 Federal
Estate Tax.
FOOTNOTES TO TABLE
/1/ It is assumed that there are three beneficiaries, a wife, a
minor child, and an adult child.
/2/ Vanishing exemption.
/3/ Conditional exemption.
END OF FOOTNOTES
Source: Compiled on the basis of State statutes.
Table 5 Death tax exemptions in foreign countries /1/
Amount of
Country Type of tax exemption /2/
Canada
Alberta Succession duty $ 1,000
British Columbia Succession duty 20,000
Manitoba Succession duty 25,000
New Brunswick Estate and
succession duty 25,000
Newfoundland Estate duty 1,000
Nova Scotia Succession duty 25,000
Ontario Succession duty 25,000
Prince Edward Island Succession duty 5,000
Quebec Succession duty 15,000
Saskatchewan Succession duty 15,000
Yukon Succession duty 10,000
Germany Inheritance tax 12,000
Australia Estate duty 4,000
Norway Inheritance tax 1,233
Great Britain Estate duty 487
Austria Estate duty 468
Denmark Inheritance tax 438
Italy Succession duty 158
France Inheritance tax None
Finland Inheritance tax None
Netherlands Inheritance tax None
Sweden Inheritance tax All
Spain Inheritance tax All
South Africa Estate duty All
Country Type of exemption
Canada
Alberta Conditional
British Columbia Continuous
Manitoba Conditional
New Brunswick Conditional
Newfoundland Conditional
Nova Scotia Conditional
Ontario Conditional
Prince Edward Island Continuous
Quebec Continuous
Saskatchewan Conditional
Yukon Conditional
Germany Complete exemption in case children
are living or have died in action
during the World War or for National
Socialist Cause
Australia Continuous
Norway Continuous
Great Britain Conditional
Austria Continuous
Denmark Continuous
Italy Complete exemption in case two or more
children are living
France -
Finland -
Netherlands -
Sweden -
Spain -
South Africa -
FOOTNOTES TO TABLE
/1/ In case of inheritance taxes, it is assumed that the entire
estate passes to the spouse.
/2/ Converted at current rate of exchange.
END OF FOOTNOTES
Sources: Data for Canada compiled on the basis of CCH,
INHERITANCE, ESTATE AND GIFT TAX SERVICE. 1937: Data for other
countries compiled from foreign statutes, year books, commission
reports and CCH, TAX SYSTEMS OF THE WORLD, 1936.
Table 6 State death taxes: Method of taking exemptions (As of February 1, 1937)
1. States in which continuous exemptions are deducted from the first
bracket:
Arizona Louisiana Ohio Texas
California Michigan Oregon Utah
Connecticut Minnesota Rhode Island Vermont
Delaware Montana South Dakota Virginia
Indiana New Jersey Tennessee Wisconsin
New York
2. States in which continuous exemptions are deducted from the last
bracket:
Alabama Idaho Mississippi North Dakota
Arkansas Illinois Missouri Oklahoma
Colorado Iowa Nebraska South Carolina
Florida Kansas New Mexico Washington
Georgia Maine North Carolina Wyoming
3. States which employ vanishing exemptions:
Kentucky
West Virginia
4. States which employ conditional exemptions:
Maryland
Massachusetts
5. New Hampshire allows full exemption to Class I beneficiaries but
no exemption to Class II beneficiaries.
Pennsylvania allows partial exemption to widow or children and
taxes the balance at a flat rate.
Source: Compiled on the basis of State statutes.
Table 7 Estate tax returns: Value of deductions on account of insurance 1931-1935 (Net estate classes and amounts in thousand of dollars)
Net estate classes: Year of filing
1931 1932 1933
Not taxable under 1926 Act -- -- $11,094
but taxable under subsequent
acts
Under $50 $9,601 $8,378 8,127
50 - 100 5,828 5,694 4,508
100 - 200 6,764 6,267 5,163
200 - 400 6,763 5,563 3,994
400 - 600 3,101 2,493 1,937
600 - 800 1,716 1,613 718
800 - 1,000 1,819 802 722
1,000 - 1,500 1,813 890 599
1,500 - 2,000 767 377 252
2,000 - 2,500 333 66 82
2,500 - 3,000 439 250 80
3,000 - 3,500 303 131 29
4,000 - 5,000 161 160 -
5,000 - 6,000 101 25 7
6,000 - 7,000 93 71 -
7,000 - 8,000 80 - 40
8,000 - 9,000 40 43 -
9,000 - 10,000 - - -
10,000 and over 182 40 -
Total 40,065 32,937 37,352
Net estate classes: Year of filing Ratio of
1934 1935 Total insurance
exemption
to gross
estate 1/
Not taxable under 1926 Act $17,537 $18,017 46,648 4.52%
but taxable under subsequent
acts
Under $50 8,334 8,022 42,462 3.11
50 - 100 4,255 4,804 25,089 2.72
100 - 200 5,377 5,380 28,951 2.25
200 - 400 3,709 4,724 24,753 1.64
400 - 600 1,694 2,082 11,307 1.24
600 - 800 1,054 1,156 6,257 .97
800 - 1,000 416 638 4,397 .89
1,000 - 1,500 637 1,117 5,056 .62
1,500 - 2,000 248 387 2,031 .41
2,000 - 2,500 100 275 856 .23
2,500 - 3,000 120 41 930 .37
3,000 - 3,500 71 48 582 .29
3,500 - 4,000 101 117 453 .21
4,000 - 5,000 60 - 381 .16
5,000 - 6,000 - 40 173 .08
6,000 - 7,000 - - 164 .10
7,000 - 8,000 32 37 189 .16
8,000 - 9,000 - - 83 .07
9,000 - 10,000 - -
10,000 and over - 24 247 .03
Total 43,745 46,910 201,009 1.66
FOOTNOTE TO TABLE
/1/ For statistics on gross estates see Table 3. Source:
Statistics of Income, 1930-1934.
END OF FOOTNOTE
Table 8 Estate tax returns: Value of deduction on account of charitable, public and similar bequests 1931 - 1935 (Net estate classes and amounts in thousands of dollars)
Net Year of filing
estate
classes 1931 1932 1933 1934
Not taxable under . . . . . . . . $9,862 $12,960
1926 Act but
taxable under
subsequent acts
Under $50 $13,863 $215,377 7,283 6,689
7,285 6,462 5,841 5,285
100 - 200 18,072 10,420 6,094 9,157
28,745 20,303 7,046 7,751
400 - 600 32,116 26,402 5,361 7,820
600 - 800 8,078 8,299 4,249 6,472
800 - 1,000 21,548 8,021 16,708 633
1,000 - 1,500 7,682 10,944 3,392 8,135
1,500 - 2,000 8,446 1,278 1,565 14,887
2,000 - 2,500 3,068 15,885 3,429 15,367
2,500 - 3,000 9,936 552 560 1,677
3,000 - 3,500 1,419 262 1,406 8,074
3,500 - 4,000 1,517 1,487 365 9,423
4,000 - 5,000 6,802 375 2,299 540
5,000 - 6,000 470 458 280 -
6,000 - 7,000 169 10,510 388 -
7,000 - 8,000 2,728 2,276 - 12,977
8,000 - 9,000 85 5,148 125 -
9,000 - 10,000 - 200 - -
10,000 and over 11,326 1,804 - 95
Total
183,355 146,443 76,253 127,942
1935 Total Ratio of
charitable
gifts to gross
estate 1/
Not taxable under $16,825 $39,647 3.84%
1926 Act but
taxable under
subsequent acts
Under $50 4,983 48,195 3.53
50 - 100 4,141 29,014 3.15
100 - 200 17,165 60,908 4.74
200 - 400 12,328 76,173 5.06
400 - 600 4,097 75,796 8.28
600 - 800 8,601 35,699 5.54
800 - 1,000 1,468 48,378 9.84
1,000 - 1,500 4,631 34,784 4.29
1,500 - 2,000 2,328 28,504 5.71
2,000 - 2,500 1,093 33,842 10.51
2,500 - 3,000 957 13,662 5.39
3,000 - 3,500 1,678 12,859 6.39
3,500 - 4,000 333 13,125 6.20
4,000 - 5,000 351 10,567 4.25
5,000 - 6,000 2,956 4,164 1.89
6,000 - 7,000 - 11,067 6.79
7,000 - 8,000 - 17,981 14.87
8,000 - 9,000 990 6,348 5.17
9,000 - 10,000 - 200 .62
10,000 and over 591 13,816 1.91
Total 85,516 619,509 5.10
FOOTNOTE TO TABLE
/1/ For statistics on gross estates, see Table 3.
END OF FOOTNOTE
Source: STATISTICS OF INCOME, 1930-1934.
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