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Do you have a reference for this "promise"? In the 50s through 70s, there was a much higher income tax on the upper income brackets: the tax was much more prog

Do you have a reference for this "promise"? In the 50s through 70s, there was a much higher income tax on the upper income brackets: the tax was much more progressive. Ronald Reagan dramatically lowered the income taxes on the high income people and kicked off the dramatic increase in economic inequality that we've seen over the past 50 years. The GOP destroyed much of the promise of the American Dream in this case. Is this what you mean?

leereeves 6y ago
I don't know what was promised, or by who, but the first federal income tax after passage of the 16th amendment applied to only the richest 3% of the population. https://en.wikipedia.org/wiki/Revenue_Act_of_1913 https://en.wikipedia.org/wiki/Revenue_Act_of_1913
- erichocean 6y ago
  Only 3% of the nation had any income above $3K, and they only paid a 1% (!) tax on the income above that threshold. That's how it was sold to the public. Compare that to the general income tax today, and who it applies to: the floor now includes ~60% of people with any income at all, and the lowest possible income tax rate is 10%, e.g. 10x higher. And literally everyone pays income tax in the form of Social Security and Medicare. (For whatever reason, if an income tax is pre-allocated to particular government spending, it's no longer an "income tax" in some people's eyes. The tax effect is identical and you need the 16th Amendment to allow it, so IMO it should be lumped in with the other income taxes we pay.)
bluedevil2k 6y ago
It was supposed to be a temporary tax to fund the Civil War, but like most/all taxes, the "temporary" became permanent. (1) From Wikipedia - In 1913, the top tax rate was 7% on incomes above $500,000 (equivalent to $12.9 million in 2019 dollars) and a total of $28.3 million was collected. 1 - https://www.mwattorneys.com/blog/first-income-tax-was-supposed-to-be-temporary/ https://www.mwattorneys.com/blog/first-income-tax-was-suppos...

leereeves 6y ago

I don't know what was promised, or by who, but the first federal income tax after passage of the 16th amendment applied to only the richest 3% of the population. https://en.wikipedia.org/wiki/Revenue_Act_of_1913 https://en.wikipedia.org/wiki/Revenue_Act_of_1913

erichocean 6y ago
Only 3% of the nation had any income above $3K, and they only paid a 1% (!) tax on the income above that threshold. That's how it was sold to the public. Compare that to the general income tax today, and who it applies to: the floor now includes ~60% of people with any income at all, and the lowest possible income tax rate is 10%, e.g. 10x higher. And literally everyone pays income tax in the form of Social Security and Medicare. (For whatever reason, if an income tax is pre-allocated to particular government spending, it's no longer an "income tax" in some people's eyes. The tax effect is identical and you need the 16th Amendment to allow it, so IMO it should be lumped in with the other income taxes we pay.)

bluedevil2k 6y ago

It was supposed to be a temporary tax to fund the Civil War, but like most/all taxes, the "temporary" became permanent. (1) From Wikipedia - In 1913, the top tax rate was 7% on incomes above $500,000 (equivalent to $12.9 million in 2019 dollars) and a total of $28.3 million was collected. 1 - https://www.mwattorneys.com/blog/first-income-tax-was-supposed-to-be-temporary/ https://www.mwattorneys.com/blog/first-income-tax-was-suppos...