Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter 2 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

When Top Tax Rates Rise, So Does The Economy

By   Follow Me on Twitter     Message Arlen Grossman       (Page 1 of 1 pages)     Permalink    (# of views)   1 comment

Related Topic(s): ; ; ; ; ; ; ; ; ; , Add Tags
Add to My Group(s)

Well Said 2   Must Read 1   News 1  
View Ratings | Rate It

opednews.com

Author 55645
Become a Fan
  (14 fans)
- Advertisement -

Looking at the chart below, you can see the top marginal income tax rates dropped from 73% in 1921 all the way down to 24% by 1929. After that, as we know from history, the stock market crashed and we plunged into the Great Depression.


Income Taxes
(
Image by Susan Missal Lenner, CPA)   Permission   Details   DMCA

Image: Susan Missal Lenner, CPA

When the top marginal rate jumped as high as 94% in 1945 (and 92% during the Eisenhower era) and never below 70% until President Reagan was in office, the American economy hummed along very nicely.

- Advertisement -
{Note: The marginal tax rate is the rate on the last dollar of income earned, which is different and less than the average tax rate, which is the total tax paid as a percentage of total income earned.}

But from Reagan's presidency to now, the top rate dropped to its current level of 35%, and for all but the wealthy, the economy has been sluggish at best. It shouldn't take an Ivy League mathematician to figure out from the numbers in the charts that the economy does best for most Americans when the rich are paying their fair share, something they haven't done for a very long time.

Of course, the Republican Party is horrified at the thought of letting the Bush tax cuts of 2001 and 2003 expire (as they were scheduled to in 2010) and allowing the top marginal rate to move from the current 35% to its previous 2000 level of 39.6%.  Even with massive federal deficits, the thought of a 4.6% hike on the marginal rate of millionaires and billionaires is totally unacceptable to the GOP tax-cut idealogues.

The facts contained in the chart below should be convincing to any objective observer that the top tax rates need to rise, though not if he or she has a Republican or Tea Party bent, because to those people, facts and evidence are trumped by discredited ideology.

- Advertisement -


Chart above is fromthe Tax Policy Center (Urban Institute and Brookings Institution)

- Advertisement -

 

- Advertisement -

Well Said 2   Must Read 1   News 1  
View Ratings | Rate It

opednews.com

Arlen is a writer/blogger living in Monterey, CA. His political blog is thebigpicturereport.com. He also writes a quotation quiz "What's Your QQ?" at quotationquotient.com.

Arlen Grossman Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

"No War By Any Nation in Any Age Has Ever Been Declared By the People"

11 Sure-Fire Predictions About the War Against ISIS

Is the CIA Everywhere? Maybe Your Paranoia is Justified

Which America Do You Live In: Newsweek's "SuperCountry" or Reich's Stalled "Tinder-Box"?

The Fed's Unprecedented Generosity

Syria Used Chemical Weapons--Are You Sure?