This diary is going to be short. And have shortcomings. There are brilliant economic minds posting on here every week, so I'm probably the last person qualified to raise this. Still and all.
As we stress about finding the resources to pay for decent health care, bank bailouts and two wars, isn't it time for the rich to do their share?
Here are income tax rates from 1913 to 2003.
The top bracket (variously defined over the years) has paid marginal rates that ranged very widely.
The top bracket started at 7% in 1913 and was up to 77% by the end of WWI. (These stats are for married filing jointly, which I suppose was the most common type of filing until the last generation.)
The top rate came down again gradually to a low of 25% from 1925 through 1931. In those years...we know what happened. Bbiiiiiiiiiggg bubble. Big bust. 1929. Millionaires jumping out of skyscrapers, and non-millionaires losing their homes.
In 1932-35, 63%.
For then next few years, 79%.
In 1940, 80% -- on up to 94% by the end of WWII. Down a bit then, but not back below 80%.
From 1951 through 1963 -- 91% And we know what those years were like. The rising tide lifted a lot of boats.
Then, in the 70%'s through 1980.
Reagan Revolution. Contribution to the greater good from the top tax bracket -- making out like bandits at this time -- slides to 28%. While the industrial base and the infrascturcture proceed to hollow out...
Tax paid in the top bracket is never again to reach 40%. Tops out at 39.6% from 1993 through 2001.
And now...
The rich in the top bracket, defined as $372,950 and up filing single, fork up only 35%.
(BTW, that's a top bracket that has been defined down pretty low, since the top bracket was $400,000 and up back in 1963. Is it reasonable in 2009 that a a Wall Streeter making $3.73 million should be asked do no more than a medical professional making $372,950?)
OK. We are now in two wars and an economic crisis, and scraping to try to bring the U.S. into the 20th, let along the 21st, century on health care for its citizens.
Isn't it time for the rich to do their share?