Knowing the history, means acknowledging effects of the 1980-1982
tight-money policies of Fed Chairman Paul Volcker (a 1979 nominee by Carter) followed by huge loosening of M2 in 1983-1984.
The failure of OPEC in the mid-1980’s also boosted GDP significantly.
Systemic changes saw the decline of major industries such as textiles and auto manufacturing in favor of imports, retroactive amnesty for millions of illegal aliens in 1986, and a widespread termination of middle-class employee benefits such as pensions in favor of financing of merger and acquisition activities into 1987.
Writing a Comment at another post, I checked out taxes in 1961 and for all years from 1913 to 2017. I don’t have the computer expertise to transfer the useful graph to this thread. Perhaps someone else could do that? In 1961 the top earner tax rate was 91%. Kennedy wasn’t talking about a cut to 39%, but something in the 70s. As to the Reagan years, from 1980 to 1982 top tax dropped from 70% to 50% where it stayed until 1986 after which it dropped down to 28% in in 1988. By 1993 (Gulf War costs) they were up to 39.6% where they stayed until 2000. In 2003 35% became the new normal (no Bush2 increases to cover the Iraq/Afghanistan war) where they stayed until 2012, long after “Ozero” was elected. So NO massive tax increases by him. Corporations fled to cheap labor countries because the massive increases in upper management salaries during and after the Reagan years meant CEOs had to find cheap labor to cover those obscene salaries before the stockholders started screaming bloody murder.
Top taxes for 1918 to 1921 averaged in the mid 70s (paying for WW1).
From 1936 to 1939 were 79% (ending the depression).
From 1941 to 1963 ranged from 81.1% to 92%,
a total of 23 years (included WW2 and Korean War).
From 1964 to 1980 averaged in the lower 70s (Vietnam War).
From 1987 to present rates bounced around from 28% to 39.6% (and Bush2 left paying for his wars to the future generations). On the other hand Bush1 realized that 28% wasn’t cutting it, raised taxes slightly and lost votes.
http://www.taxpolicycenter.org/statistics/historical-highest-marginal-income-tax-rates
You all are absolutely right, this is a giveaway to the big corporations. We can get rid of the health mandate, but how will emergency room costs be recouped, from us? Social Security is likely to take a hit. If you think it is unfair to tax local and state taxes twice, how about SS? In 1983 Rs and Ds agreed to tax SS on 50% of income over $25,000 for singles and $32,000 for couples. This was based on income we had already earned and paid taxes on. Then Clinton increased the rate to 85% for income over the $25k and $32k deductions. Inflation has doubled in those years, but have they increased those deductions according to inflation. He## no, we moderate income retired people are supporting the big earners and corporations on money we were already taxed. These exemptions should now be in the $50ks and $70ks. as a widow for a decade I can’t even afford to marry the nice man I am now with. As two singles we have $50,000 exemption total on our single tax forms, but if we got married we could only deduct $32,000. [$50,000 - $32,000 = $18,000 x 25% = $4,500, which is more than the increase in the Personal Deduction will give the 2 of us.] Thanks for pushing us into living in sin you sneaky tax law promoters. In fact if the uniparty would just stick to the agreement they made in 1983 that FICA be deducted from the 90% level of all earnings in a given year we would not be worrying about SS disappearing in a few years. The geniuses who devised this compromise arranged that the “tax max” would increase according to inflation. But guess what happened, wages of higher level earners were jumping 10% to 20% after 1983, so the total earning being deducted from are down around 82% instead of the agreed 90%. Once more the richest win while we eat dirt. This is the same scam that happened with the Alternative Minimum Tax—failure to use a true index figure or figures.
This is also happening in big cities. There is concern that the high housing cost states like CA, NY, and NJ will vote against this tax plan. In one medium city which is politically controlled by big developers the property tax has increased by at least 10% each year except if you are living in the house. This has driven rentals sky high, so police, firemen, teachers, hospital/restaurant/hotel workers have to live way out in the suburbs, and God help them and us when there is a major storm and they can’t get home or in to work. These taxes should increase according to inflation, and only be adjusted much higher when a property is sold or big renovations are made.
Does anyone know what is happening to the Schedule E or to the Schedule C for small business people?
If McCain does vote for this tax bill it could be his way of destroying the Trump wing of the Rep. party which has been less than kind to him to go to the grave with him.
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