Thursday, December 13, 2012

Tax Rates Over The Years

When I heard that France's new president intends to raise the tax rate for millionaires (those making above €1 million or $1.3 million) to 75%, I wondered what our highest tax rate was here in the US, for the top tier. I found this graph that shows the top tier in the US (making over $200,000 at the time) paid 91% all through the 1950s!

Source: The Truth About Taxes: Here's How High Today's Rates Really Are
"Importantly, this was one of the most successful eras in US economic history [the 1950s and early 1960s]. The middle class boomed, the economy boomed, and the stock market boomed. And all with the top marginal income tax rate over 90%."
"Super-low tax rates on rich people also appear to be correlated with unsustainable sugar highs in the economy - brief, enjoyable booms followed by protracted busts. They also appear to be correlated with very high inequality. (For example, see the 1920s and now)."


Angela and Melinda said...

One of the many things Repubs don't want folks to know (and which, in fact, our history-challenged populace is largely unaware of).

Bix said...

I'm going to count myself in that history-challenged group. But catching up has been jolly good.