Posted on 09/24/2004 2:15:53 PM PDT by paltz
This is a table of the top marginal tax rate faced by married couples for most of the last century in the US.
Note that these are top marginal rates only, not average effective rates. That is,
The table is limited to married couples merely to make the presentation simpler.
Tax year | Top marginal tax rate (%) |
Top marginal tax rate (%) on earned income, if different<1> |
|
Taxable income over-- |
---|---|---|---|---|
1913 | 7 | 500,000 | ||
1914 | 7 | 500,000 | ||
1915 | 7 | 500,000 | ||
1916 | 15 | 2,000,000 | ||
|
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1917 | 67 | 2,000,000 | ||
1918 | 77 | 1,000,000 | ||
1919 | 73 | 1,000,000 | ||
1920 | 73 | 1,000,000 | ||
1921 | 73 | 1,000,000 | ||
|
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1922 | 58 | 200,000 | ||
1923 | 43.5 | 200,000 | ||
1924 | 46 | 500,000 | ||
1925 | 25 | 100,000 | ||
1926 | 25 | 100,000 | ||
|
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1927 | 25 | 100,000 | ||
1928 | 25 | 100,000 | ||
1929 | 24 | 100,000 | ||
1930 | 25 | 100,000 | ||
1931 | 25 | 100,000 | ||
|
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1932 | 63 | 1,000,000 | ||
1933 | 63 | 1,000,000 | ||
1934 | 63 | 1,000,000 | ||
1935 | 63 | 1,000,000 | ||
1936 | 79 | 5,000,000 | ||
|
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1937 | 79 | 5,000,000 | ||
1938 | 79 | 5,000,000 | ||
1939 | 79 | 5,000,000 | ||
1940 | 81.1 | 5,000,000 | ||
1941 | 81 | 5,000,000 | ||
|
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1942 | 88 | 200,000 | ||
1943 | 88 | 200,000 | ||
1944 | 94 <2> | 200,000 | ||
1945 | 94 <2> | 200,000 | ||
|
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1946 | 86.45 <3> | 200,000 | ||
1947 | 86.45 <3> | 200,000 | ||
1948 | 82.13 <4> | 400,000 | ||
1949 | 82.13 <4> | 400,000 | ||
|
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1950 | 84.36 | 400,000 | ||
1951 | 91 <5> | 400,000 | ||
1952 | 92 <6> | 400,000 | ||
1953 | 92 <6> | 400,000 | ||
|
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1954 | 91 <7> | 400,000 | ||
1955 | 91 <7> | 400,000 | ||
1956 | 91 <7> | 400,000 | ||
1957 | 91 <7> | 400,000 | ||
|
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1958 | 91 <7> | 400,000 | ||
1959 | 91 <7> | 400,000 | ||
1960 | 91 <7> | 400,000 | ||
1961 | 91 <7> | 400,000 | ||
|
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1962 | 91 <7> | 400,000 | ||
1963 | 91 <7> | 400,000 | ||
1964 | 77 | 400,000 | ||
1965 | 70 | 200,000 | ||
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1966 | 70 | 200,000 | ||
1967 | 70 | 200,000 | ||
1968 | 75.25 | 200,000 | ||
1969 | 77 | 200,000 | ||
1970 | 71.75 | 200,000 | ||
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1971 | 70 | 60 | 200,000 | |
1972 | 70 | 50 | 200,000 | |
1973 | 70 | 50 | 200,000 | |
1974 | 70 | 50 | 200,000 | |
|
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1975 | 70 | 50 | 200,000 | |
1976 | 70 | 50 | 200,000 | |
1977 | 70 | 50 | 203,200 | |
1978 | 70 | 50 | 203,200 | |
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1979 | 70 | 50 | 215,400 | |
1980 | 70 | 50 | 215,400 | |
1981 | 69.125 | 50 | 215,400 | |
1982 | 50 | 85,600 | ||
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1983 | 50 | 109,400 | ||
1984 | 50 | 162,400 | ||
1985 | 50 | 169,020 | ||
1986 | 50 | 175,250 | ||
1987 | 38.5 | 90,000 | ||
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1988 | 28 <8> | 29,750 <8> | ||
1989 | 28 <8> | 30,950 <8> | ||
1990 | 28 <8> | 32,450 <8> | ||
|
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1991 | 31 | 82,150 | ||
1992 | 31 | 86,500 | ||
1993 | 39.6 | 89,150 | ||
1994 | 39.6 | 250,000 | ||
1995 | 39.6 | 256,500 | ||
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1996 | 39.6 | 263,750 | ||
1997 | 39.6 | 271,050 | ||
1998 | 39.6 | 278,450 | ||
1999 | 39.6 | 283,150 | ||
2000 | 39.6 | 288,350 | ||
|
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2001 | 39.1 | 297,350 | ||
2002 | 38.6 | 307,050 | ||
2003 | 35 | 311,950 |
I dont think I would've lived in the U.S. without an amazing tax lawyer during the 60's & 70's. If the government is confiscating more than 50% of your money it's your duty to move or evade taxes. That's insane that marginal rate was at 90% one time.
I've always said we are a few election away from socialism. Wealth Confiscation began under Roosevelt and basically continued until Regan came along.
The clinton years really did as number on Reagan's tax cuts.
Well when people say Eisenhower was a RINO, I guess they sort of have a point, based on this!
Nice post. Very informative and instructive to see the rates over the sweep of time. It makes me appreciate Reagan's accomplishement even more after seeing what he was up against and how entrenched those high rates had become for such a long time.
Ike was President at a time when the GOP were more obessessed about "balanced budgets" than tax cuts. We need both if you ask me. Bill Owens and (Jeb) Bush have done both.
Makes a nice graph with the terms of Harding, Coolidge, Hoover and Reagan overlayed. Just about the only time rates went down was during Republican administrations. Wish I knew how to paste a gif file.
It means that is the rate on the next dollar you earn in the top rate bracket.
Thanks. Like most people, I have those areas where I'm knowledgeable and those where I'm not. Understanding the tax system and its lingo is one where I'm a dunce.
I have the same problem when I try and figure out what the H$%% John Kerry is saying or stands for. A fruitless effort.
Great post, thanks.
Agreed, but then I don't even try to understand what the Dork-in-Chief flaps his gums about daily. Guess I'll have to pay attention to him during the debates. But my fondest fantasy for the debates is that our Dubya will grab that finger Kerry keeps pointing and shaking at people, and snap it off like a dry twig.
No problem. It stuns me that the gov't was taking over 90%. This is nothing but legal robbery.
LOL. That's the point. They only thought they were. Nobody was making that salary. The compensation was made through other means. That's why a 90 percent (or even 50 percent) tax rate is a joke as far as a means of raising revenue.
Woodrow Wilson : 1913-1921
Warren G. Harding : 1921-1923
Calvin Coolidge : 1923-1929
Herbert C. Hoover : 1929-1933
Franklin D. Roosevelt : 1933-1945
Harry S. Truman : 1945-1953
Dwight D. Eisenhower: 1953-1961
John F. Kennedy : 1961-1963
Lyndon B. Johnson : 1963-1969
Richard M. Nixon : 1969-1974
Gerald Ford : 1974-1977
Jimmy Carter : 1977-1981
Ronald Reagan : 1981-1989
George Bush : 1989-1993
Bill Clinton : 1993-2001
George W. Bush : 2001-
This is a table of the top marginal tax rate faced by married couples for most of the last century in the US.
Note that these are top marginal rates only, not average effective rates. That is,
The table is limited to married couples merely to make the presentation simpler.
Tax year | Top marginal tax rate (%) |
Top marginal tax rate (%) on earned income, if different<1> |
Taxable income over-- |
---|---|---|---|
1913 | 7 | 500,000 | |
1914 | 7 | 500,000 | |
1915 | 7 | 500,000 | |
1916 | 15 | 2,000,000 | |
1917 | 67 | 2,000,000 | |
1918 | 77 | 1,000,000 | |
1919 | 73 | 1,000,000 | |
1920 | 73 | 1,000,000 | |
1921 | 73 | 1,000,000 | |
1922 | 58 | 200,000 | |
1923 | 43.5 | 200,000 | |
1924 | 46 | 500,000 | |
1925 | 25 | 100,000 | |
1926 | 25 | 100,000 | |
1927 | 25 | 100,000 | |
1928 | 25 | 100,000 | |
1929 | 24 | 100,000 | |
1930 | 25 | 100,000 | |
1931 | 25 | 100,000 | |
1932 | 63 | 1,000,000 | |
1933 | 63 | 1,000,000 | |
1934 | 63 | 1,000,000 | |
1935 | 63 | 1,000,000 | |
1936 | 79 | 5,000,000 | |
1937 | 79 | 5,000,000 | |
1938 | 79 | 5,000,000 | |
1939 | 79 | 5,000,000 | |
1940 | 81.1 | 5,000,000 | |
1941 | 81 | 5,000,000 | |
1942 | 88 | 200,000 | |
1943 | 88 | 200,000 | |
1944 | 94 <2> | 200,000 | |
1945 | 94 <2> | 200,000 | |
1946 | 86.45 <3> | 200,000 | |
1947 | 86.45 <3> | 200,000 | |
1948 | 82.13 <4> | 400,000 | |
1949 | 82.13 <4> | 400,000 | |
1950 | 84.36 | 400,000 | |
1951 | 91 <5> | 400,000 | |
1952 | 92 <6> | 400,000 | |
1953 | 92 <6> | 400,000 | |
1954 | 91 <7> | 400,000 | |
1955 | 91 <7> | 400,000 | |
1956 | 91 <7> | 400,000 | |
1957 | 91 <7> | 400,000 | |
1958 | 91 <7> | 400,000 | |
1959 | 91 <7> | 400,000 | |
1960 | 91 <7> | 400,000 | |
1961 | 91 <7> | 400,000 | |
1962 | 91 <7> | 400,000 | |
1963 | 91 <7> | 400,000 | |
1964 | 77 | 400,000 | |
1965 | 70 | 200,000 | |
1966 | 70 | 200,000 | |
1967 | 70 | 200,000 | |
1968 | 75.25 | 200,000 | |
1969 | 77 | 200,000 | |
1970 | 71.75 | 200,000 | |
1971 | 70 | 60 | 200,000 |
1972 | 70 | 50 | 200,000 |
1973 | 70 | 50 | 200,000 |
1974 | 70 | 50 | 200,000 |
1975 | 70 | 50 | 200,000 |
1976 | 70 | 50 | 200,000 |
1977 | 70 | 50 | 203,200 |
1978 | 70 | 50 | 203,200 |
1979 | 70 | 50 | 215,400 |
1980 | 70 | 50 | 215,400 |
1981 | 69.125 | 50 | 215,400 |
1982 | 50 | 85,600 | |
1983 | 50 | 109,400 | |
1984 | 50 | 162,400 | |
1985 | 50 | 169,020 | |
1986 | 50 | 175,250 | |
1987 | 38.5 | 90,000 | |
1988 | 28 <8> | 29,750 <8> | |
1989 | 28 <8> | 30,950 <8> | |
1990 | 28 <8> | 32,450 <8> | |
1991 | 31 | 82,150 | |
1992 | 31 | 86,500 | |
1993 | 39.6 | 89,150 | |
1994 | 39.6 | 250,000 | |
1995 | 39.6 | 256,500 | |
1996 | 39.6 | 263,750 | |
1997 | 39.6 | 271,050 | |
1998 | 39.6 | 278,450 | |
1999 | 39.6 | 283,150 | |
2000 | 39.6 | 288,350 | |
2001 | 39.1 | 297,350 | |
2002 | 38.6 | 307,050 | |
2003 | 35 | 311,950 |
This graph is a plot of year (first column in the table) against the corresponding top marginal rate (second column in the table) (in blue). Where the top marginal rate on earned income differs (1971--1981), it is also plotted (in red).
For a more detailed discussion, see the references below. Note that
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