Home > Economics, Political > How did a 90% tax bracket affect the rich?

How did a 90% tax bracket affect the rich?

Honest question, as I don’t know. How did the rich deal with this, in the 40’s and 50’s? I know the rich existed.

Did they:

  • Hide it
  • Pay it
  • Other
  • ?

    Tax rates, 1913-2011
    Tax Foundation: U.S. Federal Individual Income Tax Rates History, 1913-2011
    Interesting note, while the top rate in 1950 was 91%, the lowest rate was 20%. So they collected a lot more from the entire spectrum, not just the rich. Adjusted for inflation, the 91% rate was on incomes above $1,862,072. The 20% rate was up to $18,621, also inflation adjusted.

    Categories: Economics, Political
    1. September 21, 2011 at 5:38 pm

      I always wondered about that too.

    2. September 21, 2011 at 6:55 pm

      I can tell you one thing: some of them probably lived in PR or even the American Antilles.

    3. September 21, 2011 at 8:35 pm

      I just can’t imagine having to pay 90%, why bother working when the gov’t is going to take almost all of your hard-earned cash

      I have to assume they hid it well, people who could make that much money had to be smart or have smart people working for them.

    4. September 21, 2011 at 11:00 pm

      Evidently there were even more loopholes back then. No one paid 90%.

      Reagan did away with a lot of loopholes with his tax cuts. Free Republic had a good thread on that ( http://www.freerepublic.com/focus/f-chat/2604543/posts ). I think Kennedy and Johnson did too, with the 64 tax cut, just haven’t found anything on that.

    5. September 22, 2011 at 6:37 pm

      there was no capital investment which in turn spurred recessions in 1953 to 1954 and 1957 to ’58….

      As mentioned, Kennedy eased tax burden which spurred an almost immediate economic boom. As the economy heated up the Keynesians in Johnson’s administration immediately put the breaks on by tinkering with interest rates. The federal reserve tightened credit so abruptly that it led to a mini-recession in 66-67…

      This cycle is so easy to spot (and always has been) you have to wonder WHY it is allowed to happen…. the answer :

      Marxist / Keynesian policy
      Free Market Capitalist policy

      and the band plays on.

      other thought —- what was $18,621 in todays dollars?
      answer: $18,621.00 in 1951 had the same buying power as $163,253.29 in 2011

      whoa nelly!!! 20%…. on “The Poor”… now that’s “skin in the game”

      btw J’ames…. i didn’t know you had a glog….
      *now i get to work on being banned here….* đŸ™‚

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