>According to the best available figures, the top theoretical tax rate during the 1950s was over 90%, but the average tax rate paid by the top approximately 400

>According to the best available figures, the top theoretical tax rate during the 1950s was over 90%, but the average tax rate paid by the top approximately 400 people was 51.2%. Yeah, but 51.2% of what? The key to the real tax rate is all in what gets counted as income. Back then the IRS didn't count a company car as income, whereas today it is. In 1986 Congress added a whole lot of rules to eliminate methods people were using to shelter income, so if tax rates were raised back to 1960 levels the government would be taking a much bigger bite from everybody's income.