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To: CodeToad
Senior Engineers in 1972 could make $30,000. Today that would be $274,000, but today engineers make around $125,000, and pay far more in taxes.

Hmmmm. The federal income tax rate on $30,000 in 1972 was 45% (for a single filer). Using your inflation calculations, 45% of $274k would be $123,000 in taxes.

Lat year's 2014 tax rate on $274,000 was 33% for that same single filer. And the tax rate on $125,000 last year was 28%. Even adding in Soc Security and Medicaid, a 2014 earner doesn't have 45% of his money confiscated. How did you come to the conclusion that today's (earners) pay far more in taxes?

Your comment caught my attention because just yesterday, I was reading up on the so-called Reagan tax increases. I youtubed the Ted Cruz interview on The Late Show (Colbert). Colbert was challenging Cruz with, 'Well you know, Reagan raised taxes 11 or 12 times!" So I did a little one hour research and while Reagan did indeed sign for 11 tax increases, these were for things like a 4-9 cent per gallon tax increase or cigarette taxes.

The Reagan-era tax decreases were his complete tax overhaul by eliminating tax rates as high as 70%. In 1980, even $50,000 per year earners were paying 49% tax rates on their incomes. So while Reagan did in fact sign onto Democrat legislation raising taxes 11 times, he is remembered correctly for vastly eliminating the ultra-high tax rates, and ushered in the greatest post-war (WWII) expansion in our economy.

Resources:

Reagan Tax Record

Historical Tax Rates

54 posted on 09/23/2015 5:41:03 AM PDT by GreenAccord (Bacon Akbar)
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To: GreenAccord

“Hmmmm. The federal income tax rate on $30,000 in 1972 was 45% (for a single filer). “

Talking tax rates means nothing without talking about deductions and the entire tax code. You didn’t do that.


56 posted on 09/23/2015 5:57:50 AM PDT by CodeToad (If it weren't for physics and law enforcement I'd be unstoppable!)
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