Taxes, especially federal taxes, are an important factor to consider in any planning due to their unpredictability and variability over time. The two most significant individual federal taxes are the income tax and estate/gift tax. The federal income tax has seen changing rates and exemptions since first being implemented in 1913, reaching peak rates of up to 94% during World War II before being reduced under President Reagan. The federal estate tax is aimed at taxing the transfer of assets from deceased individuals to heirs but is criticized for reducing incentives to save and invest and negatively impacting small businesses and farms.