- Posted April 2, 2009 by
This iReport is part of an assignment:
Tax rates throughout the last 100 years
I know a lot of people that rag on Obama for wanting to raise taxes on the top income people in America. They claim that the tax rates are being raised and that won't help the nation recover at all and it'll just make things worse.
I think that kind of speaks for itself. I just found it humorous that taxes are still over 10% lower under the proposed raise than they were under Reagan, who is often shown as a great champion for lower tax rates.
Look particularly at the tax rates in the New Deal: 63-79%. That is the closest economic situation to what we're at now. And people are declaring that Obama is "punishing the successful" with his plans and tax increases. Yet no one thinks the New Deal was a bad idea or hurt America or punished the successful.
There is some debate about the numbers for the Reagan administration; the graph labels it at 50% while some say it would be better to list it at 28%. It was only in 1988 that taxes finally went down to 28%; before that they were 38.5% and that was on anything above $90k. Reagan had the highest tier ($90k) at 38% for most of his presidency, which is higher than it is today. Today's tax rates have the $78k to $170k range at 28%, which is what Reagan had it at at the end of his presidency.
I think the reason they chose 50% was because from 1982 through 1986, the highest tier (going from $80k to 175k) was at 50%. Before that it was at 70% for anything over $215k.
An average of the top tier tax rates during his years is about 50%.
Originally Posted on 4/1 at http://www.rampagingchocobo.com/2009/04/very-brief-history-of-taxes.html