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Reply #5


Response to Faygo Kid (Original post)

Wed Mar 27, 2013, 08:51 PM

5. Let's look at history: where did income tax brackets fall?

Last edited Sun Oct 20, 2013, 11:54 AM - Edit history (1)

Most discussion of tax history mentions the top marginal rates of the past (91% in the 50s, 70% in the 60s and 70s, 50% through most of Reagan's presidency, etc.)

I like to highlight a different aspect: leaving aside what the rates were, where did they kick in? We live in times where people argue "are couples who make $250K 'rich'?" "Should we raise taxes on people who make over $250K? Over $500K?"

Where did these sorts of things lie in the past?

Using the inflation adjusted historical tax bracket tables from The Tax Foundation for married couples filing jointly, let's break it down a little and find out the equivalents in 2012 dollars:

1945:
Total number of brackets: 24
# of brackets only affecting income over $250K: 14
# of brackets only affecting income over $500K: 9
Top bracket affects income over: $2,551,044

1955:
Total number of brackets: 24
# of brackets only affecting income over $250K: 16
# of brackets only affecting income over $500K: 11
Top bracket affects income over: $3,426,776

1965:
Total number of brackets: 25
# of brackets only affecting income over $250K: 13
# of brackets only affecting income over $500K: 8
Top bracket affects income over: $1,457,740

1975:
Total number of brackets: 25
# of brackets only affecting income over $250K: 9
# of brackets only affecting income over $500K: 5
Top bracket affects income over: $853,509

1985:
Total number of brackets: 15
# of brackets only affecting income over $250K: 1
# of brackets only affecting income over $500K: 0
Top bracket affects income over: $360,650

1995:
Total number of brackets: 5
# of brackets only affecting income over $250K: 1
# of brackets only affecting income over $500K: 0
Top bracket affects income over: $386,423

2005:
Total number of brackets: 6
# of brackets only affecting income over $250K: 1
# of brackets only affecting income over $500K: 0
Top bracket affects income over: $383,773

2013:
Total number of brackets: 7
# of brackets only affecting income over $250K: 2
# of brackets only affecting income over $500K: 0
Top bracket affects income over: $440,876

Special Bonus Gipper edition numbers:
1988:
Total number of brackets: 2 (No, not a typo. Two brackets)
# of brackets only affecting income over $250K: 0
# of brackets only affecting income over $500K: 0
Top bracket affects income over: $57,738
(There was a reason why Poppy Bush had to go back on his 'Read My Lips' line -- this rate was so low it was unsustainable (naturally, they crucified him for it). And every RWNJ wants to go back to this, or lower...)

ALL income tax progressivity for very high incomes was eliminated under Reagan, and has stayed that way ever since.

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Faygo Kid Mar 2013 OP
Ohio Joe Mar 2013 #1
eppur_se_muova Mar 2013 #2
CTyankee Mar 2013 #22
SammyWinstonJack Mar 2013 #3
rsmith6621 Mar 2013 #4
LineReply Let's look at history: where did income tax brackets fall?
JHB Mar 2013 #5
ybbor Mar 2013 #8
Sirveri Mar 2013 #19
CrispyQ Mar 2013 #25
ybbor Mar 2013 #6
ReRe Mar 2013 #14
JHB Mar 2013 #20
ReRe Mar 2013 #21
ErikJ Mar 2013 #7
smirkymonkey Mar 2013 #9
SaveAmerica Mar 2013 #10
Vinnie From Indy Mar 2013 #11
Overseas Mar 2013 #12
Marie Marie Mar 2013 #13
SpearthrowerOwl Mar 2013 #15
Walk away Mar 2013 #16
Guy Whitey Corngood Mar 2013 #17
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stillwaiting Mar 2013 #23
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PA Democrat Mar 2013 #26
fizzgig Mar 2013 #27
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CreekDog Mar 2013 #32
deutsey Mar 2013 #29
colsohlibgal Mar 2013 #30
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beemer27 Mar 2013 #34
Kurovski Mar 2013 #37
Matariki Mar 2013 #38
Matariki Mar 2013 #39
sfpcjock Mar 2013 #40
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