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Originally Posted by chumdawg
Been doing some reading lately, and before now I never realized that the marginal tax rate under Carter was freakin' NINETY percent! Reagan managed to get that down to where it is now. Thank God.
Who knows where this country would be if Reagan's "supply side" economics hadn't rescued us from economic hell.
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90%? not accurate...
the marginal tax rate peaked a the end of WW2 at 94%. JFK cut the tax rates from the 91% rate when he came to office to 70% in 1964, which was the rate during Carter's term.
the marginal rate was down to 50% before reagan's policies were implemented. it went as low as 28% (only on the 3 quartile of income, the highest quartile paid a lower tax rate!) until the infamous GHWBush tax increase, when it went to 31%.
Clinton's terms had the rate at 39.6%, it's down to 35% for 2006 and is set there until 2010.
The overlooked number is the income level applicable to the highest rate. for instance, even tho the marginal rate under JFK was at 70%, it was applicable at $200K (about $500K in today's $). in 1987 the rate dropped to 28%, but it kicked in at $45K. it's at 35% with the trigger at $350K or so today.
historical tax brackets chart