from 1950-1963 top tax rate was 91-92%, those were good years for our economy

[Truthmatters]

First of all there were tons of tax breaks available during that time that we don't have now. Most experts agree that the top tax rate was realistically around 50-60% which is still rather high but here's the key...ENERGY WAS CHEAP, DIRT CHEAP. A gallon of gas was less than .25 cents. The cost of energy effects everything from production to distribution. If the radical left plans to cut the price of gas to .25 we might get away with a high tax rate.

in 1950 the average income was 5,000 a year

 

[SniperFire]

Looks like another of those libtard threads where they are attempting to pretend the post WW2 boom - where the entire industrial world excepting us-,lay in bombed out ruin - is somehow the norm.


LOL

 

[Truthmatters]

You can't compare the tax rates then to now.

I just did

Which shows you have no understanding of how the tax codes were set up then or now.

says an internet poster who offered nothing but opinion

 

[Toddsterpatriot]

Reagan cut the rate from 50% to 28%. A much larger drop than Bush's 39.6% to 35%.
So why did Bush's small cut cause a crash while Reagan's 2 much larger cuts didn't?

Because Bush cut the capital gains tax rate to 15%.

Cutting cap gains from 20% to 15% caused the housing bubble?

 

[Truthmatters]

Looks like another of those libtard threads where they are attempting to pretend the post WW2 boom - where the entire industrial world excepting us-,lay in bombed out ruin - is somehow the norm.


LOL

The US didnt get bombed out

 

[SniperFire]

Looks like another of those libtard threads where they are attempting to pretend the post WW2 boom - where the entire industrial world excepting us-,lay in bombed out ruin - is somehow the norm.


LOL

The US didnt get bombed out

Nobody ever accused you of being very bright.

 

[Politico]

says an internet poster who offered nothing but opinion

Try picking up a book and reading a little.

 

[Truthmatters]

Try offering some proof of your claims

 

[Toddsterpatriot]

Reagan presided over 69.13- 50% tax rate for most of his years.

In 1987 he lowered it to 38.50

88 - 89 it was 28%


most of the Reagan term it was much higher than now huh?

Reagan's cuts were much, much larger. No crash.
Cuts totalling 60% (70% to 28%) as compared to less than 12% (39.6% to 35%).
Your logic is weak.

 

[Truthmatters]

Economic history of the United States - Wikipedia, the free encyclopedia


Postwar prosperity: 1945–1973

Further information: Post–World War II economic expansion

The period from the end of World War II to the early 1970s was a golden era of American capitalism. $200 billion in war bonds matured, and the G.I. Bill financed a well-educated work force. The middle class swelled, as did GDP and productivity. The U.S. underwent a kind of golden age of economic growth. This growth was distributed fairly evenly across the economic classes, which some attribute to the strength of labor unions in this period—labor union membership peaked historically in the U.S. during the 1950s, in the midst of this massive economic growth. Much of the growth came from the movement of low income farm workers into better paying jobs in the towns and cities—a process largely completed by 1960. Congress created the Council of Economic Advisors, to promote high employment, high profits and low inflation. The Eisenhower administration (1953–1961) supported an activist contracyclical approach that helped to establish Keynesianism as a bipartisan economic policy for the nation. Especially important in formulating the CEA response to the recession—accelerating public works programs, easing credit, and reducing taxes—were Arthur F. Burns and Neil H. Jacoby. ""I am now a Keynesian in economics," proclaimed Republican President Richard Nixon in 1969.[87] Although this period brought economic expanding to the country as whole, it was not recession proof. The recessions of 1945, 1949, 1953, 1958, and 1960 saw a drastic decline in GDP.

The "Baby Boom" saw a dramatic increase in fertility in the period 1942–1957; it was caused by delayed marriages and childbearing during depression years, a surge in prosperity, a demand for suburban single-family homes (as opposed to inner city apartments) and new optimism about the future. The boom crested about 1957, then slowly declined.[88]

damn that is a long time

 

[Truthmatters]

Reagan presided over 69.13- 50% tax rate for most of his years.

In 1987 he lowered it to 38.50

88 - 89 it was 28%


most of the Reagan term it was much higher than now huh?

Reagan's cuts were much, much larger. No crash.
Cuts totalling 60% (70% to 28%) as compared to less than 12% (39.6% to 35%).
Your logic is weak.

and they were not sustained.

taxes got raised By Bush 41

 

[Politico]

You made the claims not me. You provide the proof.

 

[Vast LWC]

Cutting cap gains from 20% to 15% caused the housing bubble?

Cutting cap gains to 20% made it more profitable to over-leverage and invest more and more. Cutting it to 15% exaggerated the effect even more.

It didn't cause the internet bubble or housing bubble, but it sure a hell exacerbated them, and it added a massive chunk to the deficit besides.

Combine that with the absence of Glass Steagal, and you've got yourself an atmosphere that's ripe for a market crash and depression.

Remember, Reagan lowered the cap gains rate to 20%, and then raised them back to 28% after just a few years. There was a reason for that.

 

[Toddsterpatriot]

Where was the crash after 1988?

in 1988 the rate was 28%

1989.......................28%

1990........................31%


1991........................31%

1992..........................31%

1993..........................39.60%


dont you remember Bush getting in trouble for raising taxes?

LOW RATES WITHOUT RAISNG TAXES FOR 5 YEARS.


why are you pretending the 5 is not in that ?

LOW RATES WITHOUT RAISNG TAXES FOR 5 YEARS.

LOL!

So Romney could cut the top rate to 20% in 2013, as long as he raises them to 25% by 2018?

 

[Againsheila]

Doesn't anybody think that the top tax rate should apply to the top incomes? Why is it the top tax rate is applied to those making barely above median income?

 

[Toddsterpatriot]

Looks like another of those libtard threads where they are attempting to pretend the post WW2 boom - where the entire industrial world excepting us-,lay in bombed out ruin - is somehow the norm.


LOL

The US didnt get bombed out

Dur.

 

[Toddsterpatriot]

Reagan presided over 69.13- 50% tax rate for most of his years.

In 1987 he lowered it to 38.50

88 - 89 it was 28%


most of the Reagan term it was much higher than now huh?

Reagan's cuts were much, much larger. No crash.
Cuts totalling 60% (70% to 28%) as compared to less than 12% (39.6% to 35%).
Your logic is weak.

and they were not sustained.

taxes got raised By Bush 41

The drop from 70% sure was sustained. 70% to 39.6% is still more than a 43% decrease.
As opposed to the Bush less than 12% decrease.
Still weak.

 

[Toddsterpatriot]

Cutting cap gains from 20% to 15% caused the housing bubble?

Cutting cap gains to 20% made it more profitable to over-leverage and invest more and more. Cutting it to 15% exaggerated the effect even more.

It didn't cause the internet bubble or housing bubble, but it sure a hell exacerbated them, and it added a massive chunk to the deficit besides.

Combine that with the absence of Glass Steagal, and you've got yourself an atmosphere that's ripe for a market crash and depression.

Remember, Reagan lowered the cap gains rate to 20%, and then raised them back to 28% after just a few years. There was a reason for that.

Most home owners never paid a penny in capital gains on their homes.
Lowering the rate increased cap gains revenues.
Glass Steagall wouldn't have prevented bad mortgage underwriting.

 

[freedombecki]

truth really pisses them off

Uh, I'm pretty sure you don't know the truth.

 

[Avorysuds]

It seems neither of you know or possibly care what caused the Great Depression. Grats on that.

In fact here, becuase maybe you're not a typical Obama-bot.

Milton Friedman Debunking Myth Of The Great Depression part 1 - YouTube

That video is all fine and dandy when it comes to bank collapses.

But it doesn't really take an in-depth look as to what caused the massive market failure that preceded the bank collapses.

In fact, it pretty much pooh-poohs the crash and the recession that coincided with it as irrelevant.

The giant bubble and bubble-popping of 1929, was caused by massive over-leveraging, brought on partially by the fact that the capital gains interest rate was 12.5%, much lower than it has ever been at any time in the last century.

In fact, the crisis just past bears a huge amount of resemblance to the bubble-crash of 1929, and the capital gains rate was the lowest it has ever been (15%) with the sole exception of the 1920's.

Lowering the Capital Gains rate reduces tax revenue, encourages bubble formation and over-leveraging, and helps create wealth inequity.

And it does not encourage investment in US jobs, because the companies being invested in are sending the jobs overseas.

Friedman is not the only school of thought on the subject, and there's good reason for that.

The video goes into great depth as to what caused the Great depression. What you're talking about is the recession. The Depression was caused by the FED, the Great Depression was caused by FDR extending it so long through welfare and high taxes.