12/26/2012

Liberal Myth of 91% Tax On the Rich Debunked

Posted by Brian

When talking about raising the tax rates on the rich, liberals loooove to point out that tax rates on the so-called rich during the Eisenhower/Kennedy years were 91%, and that it was a period of general prosperity.  The fact is, tax rates were 91% during that time.  But what they don't tell you is that those rates were not what they actually paid.  Due to deductions and other exemptions (what liberals like to call "loopholes"), literally no one paid a 91% tax rate.  In fact, no one paid anywhere even remotely close to that rate.

Mark Levin addressed this liberal myth on a recent "best of" show, pointing out what the "effective" tax rate was, that is, what people actually paid in taxes.

So what did the "rich" pay as a percentage back during the 50's "boom" economy?

$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

From The Straight Dope

The highest rate paid during the Eisenhower years was the 49.3% rate paid by those making over $1 million back in 1953.  By 1961, their effective rate was down to 27.1%!  Hardly the 91% that liberals trumpet every time they can get to a microphone.

Myth busted!


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