Quote:
Originally Posted by TimFreeh
The 90% top rate argument is largely a canard, while the top marginal rate was indeed 90% the existence of loopholes (closed by the way by Ronald Regan in the 1986 TEFRA act) ensured that virtually nobody actually paid the 90% rate. Here's a table that shows the effective rates paid over the years and while the trends are down a bit the rates are basically unchanged over the last 40+ years.
http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=456
I know people like to believe otherwise but the percentages of taxes paid by rich and poor taxpayers have remained relatively stable over the years.
I agree with your observations about increased global competition being a significant factor, we need to recognize this and take steps to make american businesses more competitive in the global marketplace. |
That's a nice chart, but it only covers the last 30+ years. I suspected that if you actually go back 40 or 50 years, the effective rate on top income earners would be double what it is now, and I was right:
http://www.cbpp.org/cms/?fa=view&id=106
Granted the site is biased, but I suspect neutral sources would show similar figures. Hence, its little wonder that the top 2% want to hold on to their ultra low tax rates, despite the country's budgetary pressure on necessary SS and medical. There is a historical precedent for higher effective rates.
There are many indicators that the socioeconomic fabric and average living standard started to decline in this country during the 1970s. Coincidence?