Originally posted by: surfsail
https://www.politifact.com/factchecks/2009/oct/02/michael-moore/michael-moores-film-capitalism-claims-richest-paid/
....."Considering that the top marginal tax rate for the wealthiest Americans today is 35 percent, that figure seems astounding. But it's true that in the 1950s, the top marginal tax rates were over 90 percent......"
,,..."So in 1955, for example, when the top marginal tax rate was 91 percent, that was the tax rate owed on a person's income over $300,000. That person would, however, pay 20 percent on the first $2,000 of income; 21 percent on the next $2,000 in income; 24 percent on the next $2,000 and graduated on up to the highest rate. On average, a person making, say, $500,000 would pay substantially less than 90 percent of their income in federal taxes.".....
We are not talking 'average' tax rates but 'marginal' ('top dollar') tax rates..
The threshold back then was about 300$k.. even if you raised this to 10 mil, the 'billionaires' would be effectively paying most of their taxes at the top dollar rates..
The current level of income disparity did not exist in the 50's.. Not many were in the 300k$ category.. Different nowadays even if you adjust the 300k for inflation..For someone with an income of 100$ mil, their effective/average rate would be getting pretty close to 90%
In the 50's something like 10 people paid the 90% rate. There were a lot more deductions back then. So, the average rate for high earners was about where it is now. No one in their right mind would stand for paying 90%. Ask the Rolling Stones.
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