I want to go back to the days when the rich were soaked and the national debt as a percentage of GDP declined every year.I have done this before but I’ll do it again for your edification, from (1963). It will do for our purposes. Anyone (a single person) earning $4,000 per year or less paid income tax at the rate of 20%. Adjusted for inflation, that would be $31,800.00 per year today. That translates to everyone earning LESS THAN $31,800 PER YEAR TODAY WOULD PAY 20% INCOME TAX. Gosh, that sure would eliminate that 48% that pay no income tax today! Way to go!
As for the top rate of your beloved 91% in 1963, that was paid by those earning over $400,000.00 Adjusted for inflation, that would be $3,186,770.00 today. Do you want to tell us that 1% of the nation earns of 3.2 MILLION PER YEAR? Really?
In the same year, employees paid 3.625% for Social Security and the employer paid nothing. Not quite the 15.2% of today.
Now, do you really want to go back to those rates? Are you aware of the long, long list of deductions in 1963? All interest on everything and the list goes on.
Federal Income Tax Brackets for Tax Year 1963 (Filed April 1964)
FICA & SECA Tax Rates
The Inflation Calculator
So do most Americans.
Those who advocate a flat tax acknowledge that deductions are economically unnecessary. I want a steeply progressive tax system with no loop holes.