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View Diary: Piss-Poor Americans - 50% of Us Earn LESS than $26.5K a year - TRICKLE UP POVERTY (158 comments)

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  •  It was over 50% till '92? (3+ / 0-)
    Recommended by:
    shaharazade, War on Error, Roger Fox

    Even to me, a middle wage earner, that sounds extreme.  91% till Kennedy? Wow. That sounds excessive, too.  A responsible rate needs to be implemented for all concerned, and those that fall below $40,000 should have to pay very little, if anything.  

    Sarah Palin: All pistol and no squint.

    by CanyonWren on Sat Sep 10, 2011 at 08:23:15 AM PDT

    •  91% (8+ / 0-)

      was effectively a wage cap. Good for employers as well as society.

      •  Interesting; I'll read more on this eom (0+ / 0-)

        Sarah Palin: All pistol and no squint.

        by CanyonWren on Sat Sep 10, 2011 at 11:38:22 AM PDT

        [ Parent ]

        •  We used 70% and 90% rates (2+ / 0-)
          Recommended by:
          CanyonWren, War on Error

          but we gave huge tax deductions for investing in emerging tech and markets, to incentivize US job creation.

          From 1938 to 1981 the top marginal rate was never below 70%.

          People never really paid those rates, @ 70% the effective rate was about 33-35%, we gave breaks for good behavior. Todays effective rates are about 31-33%.

          Today those deductions are gone, rates are at historically low points. All those incentives to create jobs in America are gone.

          DO you see a pattern yet? Let me continue...

          Lets say you are a billionaire....why should you build a factory to make solar panels or wind turbines for a 5 to 10% return, when you  can make (20, 25, 30%) far more speculating on commodities?

          The picture I'm trying to paint is one of incentives to the flow of capital...

          High taxes should not be about punishing the rich. Hi taxes in the past were about creating a stable society, where smarter investments are rewarded.

          These hi rates also allowed the working and middle classes to be engaged in the economy, and these families were better able to take care of their own. Nowadays, the tax burden on working and middle class families have taxed them out of the economy.

          Higher taxes also means less money goes into speculation, so less money goes into speculative bubbles, so recessions arent as broad or deep.

          "Labor will rule", the story of Sidney Hillman who was a 30's labor organizer, Served in FDR's unofficial cabinet. Its a great book that goes a long ay into the thinking at the time of the depression into what became known as Industrial policy, of which cap gains, corp, income taxes were an integral part.
          11th dimensional chess at its best.

          FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Sat Sep 10, 2011 at 02:48:17 PM PDT

          [ Parent ]

    •  Those rates (12+ / 0-)

      were only on income above that amount. Not on ALL income.

      Of if the top rate, on income above 100k, was 50%, and you made 100,001, you'd only pay 50% on one dollar. Not the whole amount.

      That's what throws people off the most.

    •  It's just on the money their money earned in 1yr (8+ / 0-)

      We USED to have Trickle Down Economy.

      The rich lost nothing but 91% of the gain, not their net worth.  And, trust me, they stayed rich!!!

      Who benefits from superhighway?  corporations shipping goods

      Who benefits from great harbors?  corporations shipping goods

      Who benefits from rail service?  Corporations shipping goods

      Etc

      We just get to use their stuff from time to time.

      Who benefited from hyper housing build up?  Corporations & business owners.

      Where are the roads are needed to end the log jams that double our costs for gasoline from waiting to move?

      We subsidize oil, and pay through the nose.

      Is collective America really so dense they cant see the forest for the trees?

      The 90% the rich mostly pay tax on the money their money made - Capital Gains.

      It is now 15%  and has never been higher than 28%

      AND THAT IS A FACT.

      Trust me there are enough laws for tax deferment for the other income.

      Recent capital gains history.

      It's difficult to be happy knowing so many suffer. We must unite.

      by War on Error on Sat Sep 10, 2011 at 09:05:38 AM PDT

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    •  Sounds right.Top tax rate was 90% under Eisenhower (2+ / 0-)
      Recommended by:
      Bluefin, War on Error

      and a Republican Congress; Eisenhower wanted to pay down the debt by raising the top tax rate, NOT by sticking it to the 'little people' per Obama. The top tax rate has averaged 70% historically; it has gone down drastically under Reagan, Bush, and the "New" Democrats - thus the deteriorating infrastructure, schools, and other govt services, and the burgeoning inequality - the worse since prior to the Great Depression.

      "It depends what the meaning of 'is', is"
      Platform of the "New" Neoliberal Democratic Party
      Speaking out of one side of their mouth for the little guy, their nominal constituency, and the other for the plutocracy, their real constituency.

      by Sanctimonious on Sat Sep 10, 2011 at 12:53:17 PM PDT

      [ Parent ]

      •  Obama Tax = Reagan Tax (0+ / 0-)

        The fight is about a measly

        4.6%

        from 35% to 39.6%

        4.6

        And it's a battle that the country is suffering for.

        SICK JERKS IN CONGRESS!!

        It's difficult to be happy knowing so many suffer. We must unite.

        by War on Error on Sat Sep 10, 2011 at 05:47:32 PM PDT

        [ Parent ]

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