3 ms·
Of course it's true that the effective rate was less than 70% (that was the top _marginal_ rate, just like 37% is the top marginal rate today); however I am cur
by xenocyon 7y ago
Of course it's true that the effective rate was less than 70% (that was the top _marginal_ rate, just like 37% is the top marginal rate today); however I am curious to hear about the exemptions etc for rich people - my understanding is that these have gotten larger and more complex over time so it's surprising to me to hear that there were more loopholes in the 50s than today. Is there a source for this?
- coredog64 7y agoOne used to be able to deduct any interest, not just mortgage interest. There was a sweetheart deal for oil production, to the point that 50s Hollywood actors would form corporations that mixed film production with oil business. Capital gains were quasi indexed to inflation in that your first 50% wasn’t subject to gains taxes. The whole point of the changes in 86 (aka Reagan tax cuts) was to remove all those deductions/loopholes/shelters in return for a lower nameplate rate. The goal was to clear out bullshit stuff people were doing for tax reasons and replace it with useful economic activity.
- taeric 7y agoFamously, the nominal top rate used to be in the nineties.