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To: Big_Monkey
If Eisenhower were alive today, he'd most certainly be a Democrat.

During Eisenhower's two terms, he had only a two year window (1953 - 1955) with a Republican majority in both Houses to make major reforms. For various reasons, including WWII debt and the Korean War revenue act, it didn't happen. Tax policy became, instead, a function of economic engineering with competing interests seeking and getting tax favors. In the 1960's tax policy would become a function of social engineering.

Regardless, during Eisenhower's two terms net tax to the Treasury amounted to less than 17% of GDP, a rate that we would drool over today. The nominal rates were high but no one paid them because there were so many deductions and exclusions available.

30 posted on 06/23/2009 3:21:24 PM PDT by MARTIAL MONK
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To: MARTIAL MONK
"The nominal rates were high but no one paid them because there were so many deductions and exclusions available"

To your point, I also believe that the top marginal threshold was MUCH higher then, than it is now. I believe, and this is from memory FWIW, was around $400K. Of course, now the top marginal threshold is around $300K, and adjusting for inflation, is MUCH MUCH lower than the $400K of Eisenhower's time.

31 posted on 06/23/2009 3:27:58 PM PDT by Big_Monkey
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