15. Author: topper7788 Date: 03/04/2009 04:43 PM Reply
Doesn’t take into account "bracket creep" nor does it take into account back in the 80% days, EVERY THING was deductible, heck I think you could have deducted a burger back then...Plus there used to be all kinds of shelters to divert money tax free (That no longer exist today)... Most people in the 70’s who made BIG money paid way less % proportionate to there earning than today.. No AMT either... Apples and Oranges argument...
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It also does not take into account the income level at which the top marginal rate applies. In 1920, which there was a very high income tax percentage, the income at which it kicked in was something like %1,000,000.00.
While in the 1960s, JFK stumped on cutting taxes, which actually happened after his death, resulting in a drop from 91% to 70%, which resulted in greater economic activity (though the level was dropped from $400,000.00 per year to $200,000.00 year).
In either event, the number of people in these tax brackets was pathetically small.
Contrast this with 2002 and 2003 where the marginal rate may be about 40%, but the income levels are around $300,000.00 per year.
Mind you, the income levels I've cited - from the sources I've read - are not adjusted for inflation. Thus, if you were making $1,000,000.00 in 1920, you could buy one of several small countries. This is not true today.
Furthermore, each year shown or group of years represented, the *definition* of income is different. At one time, your tax withholding refund was not counted as income. Now it is.
Furthermore, there are far more federal and state taxes applied to various economic drivers that also sap income in addition to an income tax. Thus, when it comes time to pay income tax, you generally have less disposable income than in previous years.
This is little boy hanoi trying to play children's games with numbers, without citing context.
