Master of Ossus rants about American IncomeTax

[Illuminatus Primus]

He is not questioning that he is stating that $5,000,000 was the top bracket in the 1950s without taking into account inflation.

As for your question, $400,000 assuming an average of 4% inflation over 50 years is 2,842,673.34, not $5,000,000. With 4% interest 350,000 taken back 50 years is 49,249.42. average income in 1950 was just shy of $3,000 and increased to $5,000 by 1958.

Inflation rate isn't the only factor to be taken ito account however and is a simplification of things.

Thanks for the info, now what was the tax rate for a person making 49k in the 50's?

in 1950 it was 53.69% In 1960 it was 59% for married filing jointly
http://www.stanford.edu/class/polisci12 ... ackets.pdf

No, that's the marginal rate on the income earned in that bracket; you're only taxed 54 or 59% on the income around 49,000. You're taxed at the lower rates for the income earned on those brackets. The top rate was 90% at 200,000 (1.5+ million in 2007 dollars) in the late 1950s, you were only taxed 90% on every dollar after that bracket; every dollar after 200,000.

[ArmorPierce]

No, that's the marginal rate on the income earned in that bracket; you're only taxed 54 or 59% on the income around 49,000. You're taxed at the lower rates for the income earned on those brackets. The top rate was 90% at 200,000 (1.5+ million in 2007 dollars) in the late 1950s, you were only taxed 90% on every dollar after that bracket; every dollar after 200,000.

I am fully aware of that. Considering that I am about to graduate with a degree in accounting and finance I would hope that I am aware of that. I believe he was asking what was the highest tax bracket. When anyone talks about "I am taxed at x rate" they are reffering to the highest tax bracket they are taxed at. Everyone knows that except for people who've never filled out a 1040 I would think.

[Illuminatus Primus]

No, that's the marginal rate on the income earned in that bracket; you're only taxed 54 or 59% on the income around 49,000. You're taxed at the lower rates for the income earned on those brackets. The top rate was 90% at 200,000 (1.5+ million in 2007 dollars) in the late 1950s, you were only taxed 90% on every dollar after that bracket; every dollar after 200,000.

I am fully aware of that. Considering that I am about to graduate with a degree in accounting and finance I would hope that I am aware of that. I believe he was asking what was the highest tax bracket. When anyone talks about "I am taxed at x rate" they are reffering to the highest tax bracket they are taxed at. Everyone knows that except for people who've never filled out a 1040 I would think.

Okay. I thought you were saying it is the effective net rate (overall income taxes withheld/gross income, as a percentage). You'd be surprised how many day-to-day idiots do not realize how the tax system works. Sorry.

[Surlethe]

For those whining about the extremeness of Marina's claims of worker culture and stress in the U.S., the French worker is significantly more productive hour-by-hour than the American worker.

I've always heard that the French are much less productive than the Americans. Do you have a source for this?

[Illuminatus Primus]

For those whining about the extremeness of Marina's claims of worker culture and stress in the U.S., the French worker is significantly more productive hour-by-hour than the American worker.

I've always heard that the French are much less productive than the Americans. Do you have a source for this?

Let me check. I read it in The Economist. The French collectively are less productive, but that's because they work so much less (infamous 35-hour work week); the French worker actually IS more productive for each hour worked than the American worker, but the fewer hours brings total productivity down.

[The Grim Squeaker]

No, that's the marginal rate on the income earned in that bracket; you're only taxed 54 or 59% on the income around 49,000. You're taxed at the lower rates for the income earned on those brackets. The top rate was 90% at 200,000 (1.5+ million in 2007 dollars) in the late 1950s, you were only taxed 90% on every dollar after that bracket; every dollar after 200,000.

I am fully aware of that. Considering that I am about to graduate with a degree in accounting and finance I would hope that I am aware of that. I believe he was asking what was the highest tax bracket. When anyone talks about "I am taxed at x rate" they are reffering to the highest tax bracket they are taxed at. Everyone knows that except for people who've never filled out a 1040 I would think.

[For the Record]
I was asking about the size of the highest tax bracket(s). Meaning, is there a 50% tax on 5 million dollars or 1 million (with the latter sum being the bracket)? or maybe a 35% tax on 300,000 dollars. A 90% tax on over 5 million dollars is very, very different than the use it keeps being put to here "The tax rate was high then and everything was fine!" [Ignoring the destruction of the rest of the world, and there being no truly competitive outer markets for the rich capitalists to move to for a lower tax rate then].

And for the record, I do support a higher (compared to the state now in the US) Income tax, but also for higher brackets, and certainly nothing like 80+% taxes. Highest here is 49.5% btw. (It was about 75% when I moved to Israel)

However, As I said before though (in the bit that was split), i'm not continuing my argument (that was split), I lack the energy to argue Duchess or the various posters who agree with some of her views (or with her), i'm not that good a debator and I lack the time or mental energy for it.