One of my employees found this on the internet and I thought it was very interesting:
Federal Income Tax Rates
It lists the tax rates since 1916 for the top tax bracket and for capital gains. After looking this over, it becomes apparent why we have seen the national debt grow so much since 1982.
The best years for our economy were during the 1940s-1960s. During these years we had huge trade surpluses. Since the 1980s we have suffered from huge trade deficits as well as a huge federal government debt. This has also resulted in a much weaker dollar.
From 1936 to 1981, the top tax bracket was over 70% peaking at 94% in 1944-1945 (obviously due to the war). During the 14-year period 1951-1964, the top bracket, which applied to those making more than $200k, stayed steady at 91%. In 1982, Reagan lowered this rate to 50%, then to 38.5% in 1987, and finally to 28% in 1988. Clinton then raised the rate to 39.6%, managing to create the first Federal Government surplus since the 1960s. But George W Bush has since lowered this rate back down to 35%. Also, from 1934 to 1981, Capital Gains were taxed at over 20%, peaking at a high of 39.9% in 1976-1977. Today capital gains are taxed at 15%.
Federal Income Tax Rates
It lists the tax rates since 1916 for the top tax bracket and for capital gains. After looking this over, it becomes apparent why we have seen the national debt grow so much since 1982.
The best years for our economy were during the 1940s-1960s. During these years we had huge trade surpluses. Since the 1980s we have suffered from huge trade deficits as well as a huge federal government debt. This has also resulted in a much weaker dollar.
From 1936 to 1981, the top tax bracket was over 70% peaking at 94% in 1944-1945 (obviously due to the war). During the 14-year period 1951-1964, the top bracket, which applied to those making more than $200k, stayed steady at 91%. In 1982, Reagan lowered this rate to 50%, then to 38.5% in 1987, and finally to 28% in 1988. Clinton then raised the rate to 39.6%, managing to create the first Federal Government surplus since the 1960s. But George W Bush has since lowered this rate back down to 35%. Also, from 1934 to 1981, Capital Gains were taxed at over 20%, peaking at a high of 39.9% in 1976-1977. Today capital gains are taxed at 15%.
