Thursday, March 03, 2011

Tax rates during FDR's time.

With the situation in Wisconsin and the attempt by Gov. Walker to stop Collective Bargaining by State employees. I watched today a conversation on Cable news where people were quoting FDR and that he was against Unions back in those days and said he didn't think employees should have the right to strike if they were government employees. So I thought tonight I would shed some historical perspective to what pundits are claiming was the situation. So this below from Wikipedia about what was the tax rate back then compared to now.:

During World War II, Congress introduced payroll withholding and quarterly tax payments, Franklin D. Roosevelt tried to impose a 100% tax on all incomes over $25,000 to help with the war effort. For tax years 1944 through 1951, the highest marginal tax rate for individuals was 91%, increasing to 92% for 1952 and 1953, and reverting to 91% for tax years 1954 through 1963.

So when they discuss Union rights one must take into account that the tax rate back then for top earners was 91%. It was much more fair, although there were tax loopholes. Today's top tax rate for the wealthy is only 35%.

The issues in Wisconsin are complicated but focusing on breaking the Unions does not serve the State. Get on with governing and stop the drama!

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Blogger Maxima Regino said...

Your figures are in error. The taxes for both Clinton and Bush were calculated using the maximum rate for that selected income. For instance the Clinton 1999 tax rate on 30K was 28%, which is what they used to get the 8400 figure. However taxes are not calculated that way. The first 25K of income would have been 2013 tax brackets at the lower 15% bracket first, thus yielding a much lower figure than what you show.I am not arguing that Bush doesn't have lower taxes. He certainly does. Of course he obtained his lower tax brackets by using deficit spending and increasing the national debt. Add back in the interest payments we'll be making and I bet Bush actually cost taxpayers far more than Clinton ever did.

2:57 AM  

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