Let’s take a look at one aspect of the U.S. tax system over the past 100 years. Using the FRED economic database (https://fred.stlouisfed.org/), look for “U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket.”

a. When the income tax was first introduced, what was the rate on the highest bracket?

b. The rate on the highest tax bracket shot up shortly after the income tax was introduced; it then fell in the 1920s before shooting up again. Suggest a theory for why this happened.