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Those special tax rates were a form of windfall profit tax to discourage war profiteering. They had nothing to do with raising revenue and were not due to the
by rsync 4y ago
Those special tax rates were a form of windfall profit tax to discourage war profiteering.
They had nothing to do with raising revenue and were not due to the war "being expensive".
They were also not progressive taxation measures and had no social welfare justification (other than, of course, avoiding war profiteering). It is incorrect to compare these wartime rates with current marginal tax rates, etc.
In fact, some portion of those taxes paid were eligible for refunds after the war.[1]
[1] https://en.wikipedia.org/wiki/Excess_profits_tax#United_States https://en.wikipedia.org/wiki/Excess_profits_tax#United_Stat...
- deleted 4y ago[deleted]
- AYBABTME 4y agoThis looks like a different, additional tax to those of the regular income tax rate, aren't they? It appears to me that regular income tax rose to the high levels I shared, in addition to the taxes you shared.
- prewett 4y agoAccording to your quote, it was a 94% tax rate on income above $2.5 million (in today's money). I'd be ecstatic if I had an income of over $2.5 million and had to pay that tax! Although I wouldn't put much effort increasing my income with those tax rates.
- AnimalMuppet 4y agoI'd be delighted to pay a million dollars in taxes next year. I'd love it.