Kenneth, your lack of knowledge regarding effective tax rates is astounding...
Taxes on the rich under President Eisenhower
Liberals often claim that the rich paid a 91% income tax rate during the Eisenhower years, and while it is true that the top marginal rate was 91% from 1954 to 1963 that is not what matters. The important part is how much the rich actually paid.
Here were the effective individual income tax rates of the 3 very high income AGI groups.
$200,000-$500,000 group: Tax as Share of Amended AGI (%)
1953 = 45.9
1954 = 39.3
1955 = 36.8
1956 = 37.4
1957 = 38.6
1958 = 36.9
1959 = 33.8
1960 = 33.1
1961 = 31.5
$500,000-$1,000,000 group: Tax as Share of Amended AGI (%)
1953 = 46.3
1954 = 38.7
1955 = 35.6
1956 = 36.7
1957 = 36.6
1958 = 36.0
1959 = 32.1
1960 = 30.8
1961 = 29.1
Over $1,000,000 group: Tax as Share of Amended AGI (%)
1953 = 49.3
1954 = 38.8
1955 = 35.8
1956 = 36.1
1957 = 40.0
1958 = 33.1
1959 = 30.6
1960 = 31.3
1961 = 27.2
SOURCE: William Williams, The Changing Progressivity of the Federal Income Tax, National Tax Journal (1964)
Quote:
| In 1954, for example, the 0.3 percent of the taxpayers with more than $40,000 AGI reported almost $13 billion in AGI (including 100 percent of capital gains but excluding exempt interest); yet their effective tax rates ranged from as little as 27 percent to 39 percent—far from the infamous rates conjured up by the Code tables. |
SOURCE: Eisenhower-Era Marxist-Confiscatory Taxation: Requiem for the Rhetoric of Rate Reduction for the Rich
ir.uiowa.edu
So the rich really didn't pay anything close to 91% during the Eisenhower years, and their effective tax rate was steadily reduced.
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