- Feb 12, 2007
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Under Eisenhower, a republican, the richest were taxed at 91%. That was when we got our interstate highway system.
This is so historically and economically ignorant.
In 1956, the top marginal tax rate of 91% for a married couple filing jointly only applied to incomes over $200,000, which is nearly $3.4 MILLION today.
And note the higher rates back then at lower levels of income (the 30% rate applies to the equivalent of approx. $100K today)
The Tax Foundation - U.S. Federal Individual Income Tax Rates History, 1913-2011
Inflation Calculator | Find US Dollar's Value from 1913-2011
The real lesson to draw from past rates is that more of the income tax burden was born by people at lower levels of income than today. With lower rates for wealthier taxpayers, they actually pay a higher share of the income tax burden.
In 2010, the top 10% of taxpayers paid nearly 70% of individual income taxes.
Contrast that with 50% in 1977 (the earliest I could find, with a top tax rate of 70% on incomes over $737K in today's dollars)
http://www.cbo.gov/doc.cfm?index=1545&type=0
I can't find equivalent data for 1956, but given that the share of income tax collection as a % of GDP 17.4% (very close to the 18-19% average trend), the high taxes on The Rich didn't generate additional tax receipts.
Federal Income Taxes, as a Share of GDP, Drop to Lowest Level Since 1942, According to Final Budget Data, 10/21/03
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