History in the making?

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  • hiroad
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the above (continued):

The tax cuts of the 1920s
The share of the tax burden paid by the rich rose dramatically as tax rates were reduced. The share of the tax burden borne by the rich (those making $50,000 and up in those days) climbed from 44.2 percent in 1921 to 78.4 percent in 1928.

The Kennedy tax cuts
Just as happened in the 1920s, the share of the income tax burden borne by the rich increased following the tax cuts. Tax collections from those making over $50,000 per year climbed by 57 percent between 1963 and 1966, while tax collections from those earning below $50,000 rose 11 percent. As a result, the rich saw their portion of the income tax burden climb from 11.6 percent to 15.1 percent.

The Reagan tax cuts
The share of income taxes paid by the top 10 percent of earners jumped significantly, climbing from 48.0 percent in 1981 to 57.2 percent in 1988. The top 1 percent saw their share of the income tax bill climb even more dramatically, from 17.6 percent in 1981 to 27.5 percent in 1988.

Harmful Spending & Complexity
Lower tax rates are important, but they are not the only critical issue. Both the level of government spending and where that money goes are very important. And even when looking only at tax policy, tax rates are just one piece of the puzzle. If certain types of income are subject to multiple layers of tax, as occurs in the current system, that problem cannot be solved by low rates. Similarly, a tax system with needless levels of complexity will impose heavy costs on the productive sector of the economy.

This WebMemo is excerpted from the author's, Daniel J. Mitchell's, Backgrounder, The Historical Lessons of Lower Tax Rates, published July 19, 1996. The original publication, found here, contains footnotes and numerous charts.

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  • hiroad
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By the way, it was me that was ignoring you, whether you want to admit it or not.

Now this is all I'm going to do for you.  From here out, you're on you own, my little malodery.

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  • gta1
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I heard on the radio tonight, that caterpillar, john deere, and at&t are complaing of massively higher premiums ...well at&t said that they would have to make changes in thier coverage..........which means LESS COVERAGE and possibly HIGHER PREMIUMS to the EMPLOYEE.......i cant wait until the effects are felt by mallory, tp and the 3 or 4 others who want what the fuhrer offered.....

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BB

I asked for the mathematics showing where this extra revenue comes from and you give be a paper by a guy who makes his living promoting reduced taxes.   Of course he will reach the conclusion you want.   He in turn includes material from Andrew Mellon, one of the wealthiest people in America when he became Secretary of Treasury.   He would naturally promote the same idea.   He also, as treasurer, presided over the stock market crash of 1929 which brought on the great depession.  Hardly one to be trusted on the issue.

 

And you didn't eaven touch sales taxes.   Do you really believe if we cut the sales tax rate in half, that it would increase revenue?

 

If your theory works, why not just do away with taxes completely?

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