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In reply to the discussion: To those DU'ers who lived through the "Golden Age of Capitalism" (1940s to 1970s)-some questions... [View all]JHB
(37,158 posts)73. Let's look at how the tax brackets were arranged in that period...
A post of mine from a few weeks back:
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 affecting income over $250K: 14
# of brackets affecting income over $500K: 9
Top bracket affects income over: $2,551,044
1955:
Total number of brackets: 24
# of brackets affecting income over $250K: 16
# of brackets affecting income over $500K: 11
Top bracket affects income over: $3,426,776
1965:
Total number of brackets: 25
# of brackets affecting income over $250K: 13
# of brackets affecting income over $500K: 8
Top bracket affects income over: $1,457,740
1975:
Total number of brackets: 25
# of brackets affecting income over $250K: 9
# of brackets affecting income over $500K: 5
Top bracket affects income over: $853,509
1985:
Total number of brackets: 15
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $360,650
1995:
Total number of brackets: 5
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $386,423
2005:
Total number of brackets: 6
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $383,773
2013:
Total number of brackets: 7
# of brackets affecting income over $250K: 2
# of brackets 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 affecting income over $250K: 0
# of brackets 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. 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.
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 affecting income over $250K: 14
# of brackets affecting income over $500K: 9
Top bracket affects income over: $2,551,044
1955:
Total number of brackets: 24
# of brackets affecting income over $250K: 16
# of brackets affecting income over $500K: 11
Top bracket affects income over: $3,426,776
1965:
Total number of brackets: 25
# of brackets affecting income over $250K: 13
# of brackets affecting income over $500K: 8
Top bracket affects income over: $1,457,740
1975:
Total number of brackets: 25
# of brackets affecting income over $250K: 9
# of brackets affecting income over $500K: 5
Top bracket affects income over: $853,509
1985:
Total number of brackets: 15
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $360,650
1995:
Total number of brackets: 5
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $386,423
2005:
Total number of brackets: 6
# of brackets affecting income over $250K: 1
# of brackets affecting income over $500K: 0
Top bracket affects income over: $383,773
2013:
Total number of brackets: 7
# of brackets affecting income over $250K: 2
# of brackets 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 affecting income over $250K: 0
# of brackets 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. 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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To those DU'ers who lived through the "Golden Age of Capitalism" (1940s to 1970s)-some questions... [View all]
YoungDemCA
May 2013
OP
Another simple answer: government was not as deeply in the pockets the rich and corporate interests.
geckosfeet
May 2013
#2
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Egalitarian Thug
May 2013
#81
Good Point...many of us didn't know about "Powell Memo" until it got some attention pretty recently
KoKo
May 2013
#95
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MADem
May 2013
#78
You mean when a middle class family could live on a single median salary?
MannyGoldstein
May 2013
#29
FDR was the most powerful man in the USA. Obvious. Even he acknowledged that John L. Lewis was
byeya
May 2013
#11
"if it really was such a great time, what were the late 60s/early 70s massive social movements for?"
HiPointDem
May 2013
#21
Everyone thinks that things were simpler when they were a child. That's at least
Squinch
May 2013
#27
The Gladys Knight Version of "The Way We Were" is visually incredible..and the voice
KoKo
May 2013
#48
I don't really know much of anything we can quantify of what we have these days...
KoKo
May 2013
#50
Is this for your dissertation? Good God, there are library STACKS devoted to these questions.
WinkyDink
May 2013
#65
In every historical account save those concocted by capitalist douchebags, this era is called
alcibiades_mystery
May 2013
#71
I was going to post something similar but you've said it better. Basically it was a time when
byeya
May 2013
#89