Fema Employment

A top marginal federal income tax rate as high as 94%? How did the USA survive all those years?

As recently as early 1980's it was as high as 70%. For most of the years since 1913, the USA richest americans have had to pay taxes as hihg as 94% on portions of their income, but yet today try to mention even a 50% top marginal income and people talk about it like its impossible to have a country and jobs and businesses. What has happned? Why is it americans used to tax the rich that much for all those years and for those high amounts and now you have even poor slobs saying that great calamity will occur even at a 50% top marginal rate? Partial History of U.S. Federal Income Tax Rates Since 1913 Applicable Year Income brackets First bracket Top bracket Source 1913-1915 - 1% 7% Census 1916 - 2% 15% Census 1917 - 2% 67% Census 1918 - 6% 73% Census 1919-1920 - 4% 73% Census 1921 - 4% 73% Census 1922 - 4% 56% Census 1923 - 3% 56% Census 1924 - 1.5% 46% Census 1925-1928 - 1.5% 25% Census 1929 - 0.375% 24% Census 1930-1931 - 1.125% 25% Census 1932-1933 - 4% 63% Census 1934-1935 - 4% 63% Census 1936-1939 - 4% 79% Census 1940 - 4.4% 81.1% Census 1941 - 10% 81% Census 1942-1943 - 19% 88% Census 1944-1945 - 23% 94% Census 1946-1947 - 19% 86.45% Census 1948-1949 - 16.6% 82.13% Census 1950 - 17.4% 84.36% Census 1951 - 20.4% 91% Census 1952-1953 - 22.2% 92% Census 1954-1963 - 20% 91% Census 1964 - 16% 77% Census 1965-1967 - 14% 70% Census 1968 - 14% 75.25% Census 1969 - 14% 77% Census 1970 - 14% 71.75% Census 1971-1981 15 brackets 14% 70% IRS 1982-1986 12 brackets 12% 50% IRS 1987 5 brackets 11% 33% IRS 1988-1990 3 brackets 15% 28% IRS 1991-1992 3 brackets 15% 31% IRS 1993-2000 5 brackets 15% 39.6% IRS 2001 5 brackets 15% 39.1% IRS 2002 6 brackets 10% 38.6% IRS 2003-2008 6 brackets 10% 35% IRS http://static1.firedoglake.com/1/files//2008/09/top-1-share-to-2005.gif

Public Comments

1. Simply put, its their money. Many people would take profits as windfall causing economic panics and labor shortages and surplusses. I think after the 1910 slump and european socialist movements, the US countred with having profiteers spread out their personal earnings leaving capital in the business longer.
2. Do you understand what that means? It means any amount over say, 200k a year is taxed at a 94% rate. So you can make up to 200k dollars that year and avoid that rate. This is how it is in certain european countries. The argument here is that, with such a high rate, no one would want to earn anything over 200k a year, thus depriving the govt of taxes, and the economy of consumerism. Frankly, it's more complicated than all that, and I think the solution is somewhere in between.