If I'm making over 6 figures a year and I'm paying less than 20% in Fed and State income taxes, it's awfully hard to argue that the upper middle class are hideously overburdened, much less the really wealthy. I'd love to see us get closer to traditional conservative tax rates like we had with Eisenhower
So it's apples to apples, that would be on incomes above $2.8 million in today's dollars.
At the same time the -lowest- bracket was 20% and that was only to $4,000 (er $28,000).
I'd also guess the number of credits was far lower, though that would be difficult to research.side note for economics geeks:
Statutory marginal tax rates are important for their symbolic
significance and incentive effects, but from an economic perspective, it is
just as important to determine the effective tax rate facing the rich. The
effective rate is the rate the rich pay after taking into account lower rates for
lower brackets of income and the available deductions, credits, and other
methods of narrowing the tax base (i.e., reducing the taxable income on
which the marginal rate is imposed). Brownlee helpfully provides estimates
of the historical effective rates for the richest one percent of households as
well. He indicates that effective rates during the high marginal rate years of
World War I reached 15.8%, and that during the high marginal rate years of
World War II they reached an astonishing 58.6% in 1944.
After the war,
while the top marginal rate remained extremely high at 91%, the effective
rate for the rich declined to 32.2% in 1952, then 24.6% in 1963, rising to
28.9% when Ronald Reagan took office and declining to 22.1% following
the 1986 tax reductions.
More recent estimates for the Clinton years are
not yet available. The conclusion drawn by Brownlee is that the rich can be
taxed at very high effective rates during times of national emergency, but
that at other times their political clout ensures that effective rates are much
lower than marginal rates.
My continuing adventures of learning to play piano.
- Now Playing Moonlight SonataAmazon Kindle Book Loaning Thread
"To wield Grond, the mighty hammer of the Federal Government, is to be intoxicated with power beyond what you and I can reckon (though I figure we can ball park it pretty good with computers and maths). Need to tunnel through a mountain? Grond. Kill a mighty ogre? Grond. Hangnail? Grond. Spider? Grond (actually, that's a legit use, moreso than the rest)." - Peacedog