Welcome login | signup
Language en es fr
OccupyForum

Forum Post: Taxes on the rich under President Eisenhower

Posted 2 years ago on Nov. 26, 2012, 10:11 p.m. EST by clamor (-40) from Hopatcong, NJ
This content is user submitted and not an official statement

Liberals often claim that the rich paid a 91% income tax rate during the Eisenhower years, and while it is true that the top marginal rate was 91% from 1954 to 1963 that is not what matters. The important part is how much the rich actually paid.

Here were the effective individual income tax rates of the 3 very high income AGI groups.

$200,000-$500,000 group: Tax as Share of Amended AGI (%)

1953 = 45.9

1954 = 39.3

1955 = 36.8

1956 = 37.4

1957 = 38.6

1958 = 36.9

1959 = 33.8

1960 = 33.1

1961 = 31.5

$500,000-$1,000,000 group: Tax as Share of Amended AGI (%)

1953 = 46.3

1954 = 38.7

1955 = 35.6

1956 = 36.7

1957 = 36.6

1958 = 36.0

1959 = 32.1

1960 = 30.8

1961 = 29.1

Over $1,000,000 group: Tax as Share of Amended AGI (%)

1953 = 49.3

1954 = 38.8

1955 = 35.8

1956 = 36.1

1957 = 40.0

1958 = 33.1

1959 = 30.6

1960 = 31.3

1961 = 27.2

SOURCE: William Williams, The Changing Progressivity of the Federal Income Tax, National Tax Journal (1964)

Quote:

In 1954, for example, the 0.3 percent of the taxpayers with more than $40,000 AGI reported almost $13 billion in AGI (including 100 percent of capital gains but excluding exempt interest); yet their effective tax rates ranged from as little as 27 percent to 39 percent—far from the infamous rates conjured up by the Code tables.

SOURCE: Eisenhower-Era Marxist-Confiscatory Taxation: Requiem for the Rhetoric of Rate Reduction for the Rich

http://ir.uiowa.edu/cgi/viewcontent.cgi?article=1006&context=law_pubs

So the rich really didn't pay anything close to 91% during the Eisenhower years, and their effective tax rate was steadily reduced.

http://boards.straightdope.com/sdmb/showthread.php?t=665814