jmfcst's 9% flat or the 1960 tax code?

[opebo]

1960    
Taxable income   Tax Rate
10,000 -                 26%    
20,001 -                 38%    
60,001 -              62%    
$100,001  -             75%    
$250,001  -             89%    
$500,001 -               91%    
$1,000,000 -            91%

[Eraserhead]

The 1960s were the peak of western civilization.

[Torie]

Option 1.  You need to adjust for inflation opebo to even get in the game. But I think taking more than 60% of anyone's income at the margin (and that includes all taxes), is a profound mistake. Beyond the inequity of it all (yes, I know, you think it personifies equity but whatever) it hurts growth ... and now more than ever since money and people can so easily vote with their feet these days.

[opebo]

Option 1.  You need to adjust for inflation opebo to even get in the game.

I had a confidence in my readers, Torie - that they would do this themselves. But lets see this thing I found on line said it is $7.46 of 2011 dollars for one 1960 dollar, so:
   
Taxable income   Tax Rate
$74,600 -                 26%    
$149,200 -                 38%    
$447,600 -              62%    
$746,000  -             75%    
$1,865,00  -             89%    
$3,730,00 -               91%    
$7,460,000 -            91%

Sounds even better eh?

But I think taking more than 60% of anyone's income at the margin (and that includes all taxes), is a profound mistake. Beyond the inequity of it all (yes, I know, you think it personifies equity but whatever) it hurts growth ... and now more than ever since money and people can so easily vote with their feet these days.

Actually it doesn't effect growth, which is demand-led and State-modulated, Torie, but as for the 'voting-with-the-feet', I think they could do it then too (after all the Riveria and such places were very nice then just as now), but I'm sure we could devise ways to deal with such traitors and thieves.

[The_Texas_Libertarian]

1960    
Taxable income   Tax Rate
10,000 -                 26%    
20,001 -                 38%    
60,001 -              62%    
$100,001  -             75%    
$250,001  -             89%    
$500,001 -               91%    
$1,000,000 -            91%

Wait... I thought people were taxed more now than they have ever been?

Oh wait, that is just a conservative talking point

[fezzyfestoon]

Inflation adjusted 1960, absolutely. Though I agree with Torie that above 60% or so is a little unnerving in a lot of respects.

[© tweed]

Taxable income   Tax Rate
$74,600 -                 26%    
$149,200 -                 38%    
$447,600 -              62%    
$746,000  -             75%    
$1,865,00  -             89%    
$3,730,00 -               91%    
$7,460,000 -            91%

lmao.  I wish someone would run the numbers and see what kind of revenue this generates

[opebo]

Taxable income   Tax Rate
$74,600 -                 26%    
$149,200 -                 38%    
$447,600 -              62%    
$746,000  -             75%    
$1,865,00  -             89%    
$3,730,00 -               91%    
$7,460,000 -            91%

I wish someone would run the numbers and see what kind of revenue this generates

Yes!  How could that be done?

[Swing low, sweet chariot. Comin' for to carry me home.]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

[© tweed]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

jmfcst employs counterfactuals.

[bullmoose88]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

jmfcst employs counterfactuals.

He's right.  That's the reason we (still) have the AMT, and why the AMT was enacted around then too.

[Swing low, sweet chariot. Comin' for to carry me home.]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

jmfcst employs counterfactuals.

care to check the facts yourself?

look up what % of the federal tax burden the top 1,5,15,50 percent paid in 1960, 1970, 1980, 1990, 2000, 2010....you'll find that the tax base has shrunk and the tax burden has steadily shifted up the income ladder.

[opebo]

look up what % of the federal tax burden the top 1,5,15,50 percent paid in 1960, 1970, 1980, 1990, 2000, 2010....you'll find that the tax base has shrunk and the tax burden has steadily shifted up the income ladder.

No that's because the rich get a much bigger share of income, jmfcst.

[All Along The Watchtower]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

That's not a "simple fact", I'm afraid. That's what is called "false."

[Swing low, sweet chariot. Comin' for to carry me home.]

there were tons of loopholes back then, so no one paid those rates....the simple fact is that since 1960, the tax base has shrunk and the rich have been carrying more and more of the load....this is true even since 1986.

That's not a "simple fact", I'm afraid. That's what is called "false."

what makes you think it is false?

[courts]

Mr. Jmfcts raises some valid points, of course 9% to the federal family is 9% too much.

[Antonio the Sixth]

Even though the rates weren't exactly perfect in the 1960s, there are by far superior to what they are today and even more so to flat taxation.

[memphis]

So, under $74k is tax-free? Works for me.

[Sbane]

High tax rates with a large exemption is certainly something I could go for. Exclude the first 30k of your income. Then a 20% tax with no deduction up to say 70-80k. Then 40% up to 150k. And then 45% above that ( I don't think tax rates above that get you as much revenue as you think). 30k is enough to cover living expenses everywhere and it's not like 20% is a lot, which you will pay on your next 40-50k in income.

I would also get rid of the ridiculous single or married etc. Everyone pays the same rate, based on their individual income, not their household income. So a two earner household with both making about 60k pay only 10% in income taxes. Sounds good to me. And those with ridiculous incomes get squeezed, and they can afford to be squeezed.