Does that graph mean to imply the Top Individual income tax rate in 1955 was 90%?
How much would the change in rules about tax deductions skew this graph I wonder?
The top marginal tax rate in 1955 was 91% — down slightly from the 94% it was in the last 2 years of World War II.
It was 70% when Ronald Reagan took over the presidency in 1981. When he left office, it was 28%.
Difficult to figure out what deductions would mean to those old top marginal rates. The 28% achieved in 1988-90 was the result of agreements eliminating many tax-shelters and various other deductions but after Bush Senior gave up on “no new taxes” it was back to the old ways: upping marginal tax rates and bringing back the old deduction dodge. JMHO.
Hahah, was wondering the same thing! There is a flaw in the model here or WSJ is somehow misintepreting what the research means.
Nope! It doesn't imply it -- it plainly states that fact. It was 90% and the Dmocraps were even trying to raise that.