The April 15, 2025 income tax payments have been made, with individuals paying $537 billion and corporations paying $94 billion.  On a comparative basis, individuals paid $185 billion in March 2025, with corporations paying $18 billion.   Our tax system was originally set up in 1913 after ratification of the Sixteenth Amendment to the  U.S. Constitution.  At that time, there were seven tax brackets, with a minimum tax rate of 1%, and a maximum tax rate of 7%.  We currently still have seven tax brackets, but the minimum tax rate is now 10% with a maximum rate of 37%.

MONTHLY TREASURY STATEMENT APRIL 2025 – FIGURE 1

While the less fortunate in this country supposedly pay a lower tax rate, the wealthy in this country have legal tax loopholes to greatly reduce their income tax burden. 

Look at Berkshire Hathaway’s Warren Buffett who has stated in past interviews that his effective tax rate is about 17.7% while his staff pays an average of 32.9%.  The difference is due to much of Buffett’s income coming from Dividends and Capital Gains, which are taxed at a lower rate than salaries. Buffett is fully in favor of higher taxes for the wealthy. Did you pay more than 17.7% in taxes this year?

The current administration is wanting, once again, to lower the tax rate of the wealthy in this country, which may turn out to be double-taxation on the poor.  If tariffs are continued it is also a tax on those less fortunate as most of us will supposedly be paying more for the items we need on a daily basis. We are now looking at tariffs on most countries we purchase goods from, along with a potential increase in the lowest tax bracket.  

Prior to 1913 federal income was derived mostly from tariffs and excise taxes and the tariffs were discontinued due to the fact they supposedly cost poor taxpayers more. 

Is that what our forefathers wanted when they set up our current taxing system?

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