3 votes

Did America have a 90% income tax after WW2?

A lot of times when you are talking to people on the net they say that America had a 90% tax on income (yes, you also Maddow), but it this really true?

http://almostclassical.blogspot.se/2011/03/90-tax-rate-myth....

Read and learn.

Just wanted to post for people so they know what to answer if they get this question.




Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

taxation is a fancy name for theft

" ... the Executive has been deliberately and fraudulently taxing the People in a way that violates the fundamental law and Supreme Court rulings. The Executive is clearly prohibited from doing what it is doing – taxing the salaries, wages and compensation of the working men and women of this country and forcing the business entities that utilize the labor of ordinary American citizens to withhold and turn over to the IRS a part of the earnings of those workers."

http://www.givemeliberty.org/docs/TaxResearchCD/Attach2-Over...

That was the top marginal tax

That was the top marginal tax RATE. Not the actual tax. There were so many loopholes and credits and exemptions that no one paid anywhere close to 90%. Also, the 90% rate was only on those making over one million/year; the equivalence would be something like 8-12 million dollars today.

To be fair, effective taxes are overall quite lower nowadays. The top 1% paid about 41% in taxes in the 50s; they pay about 28% nowadays. The top 10% went from 30% to 20%. The rest of the country mostly stayed the same, except for those below the median, who went from paying a little to paying none or negative taxes. Corporations pay about a 3% rate (not counting subsidies, but counting tax credits) nowadays while they paid about 8% (again, not counting subsidies but counting credits) back in the 50s.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a