Reagan Must Have Been A Communist! Marginal Tax Rates Compared
It is amazing to hear people equate Obama's tax plan with socialism. Such arguments reflect an ignorance of fact and history. The American tax system has been progressive for a long time. Also, Obama's tax plan is not nearly as progressive (or socialistic as some RWs would say) as Bill Clinton's or Ronald Reagans. Indeed, under Reagan, we had a 50% top marginal rate.
Source:
http://www.taxfoundation.org/publications/show/151.html
http://www.taxpolicycenter.org/UploadedPDF/411693_Candi...
Our current marginal tax rates for 2008 are as follows:
10%
15%
25%
28%
33%
35%
Obama proposes the following marhinal tax rates:
10%
15%
25%
28%
36%
39.6%
McCain would simply continue applying Bush's marginal tax rates:
10%
15%
25%
28%
33%
35%
However, does this make Obama's tax plan radical or socialistic? Hardly. In 1999, when the stock market was zooming through the roof, and real median household incomes were going through the roof under Bill Clinton, we had the following marginal tax rates:
15%
28%
31%
36%
39.6%
Thus, Obama's proposed taxes are still significantly less than the taxes under Bill Clinton, particularly for middle income Americans.
Okay, well how about Ronald Reagan? Well for much of Reagan's two terms, he had top marginal tax rates of 50%, though deductions may have resulted in a different tax burden. In other words, compared to Obama's proposed tax plans, Ronald Reagan is a pinko commie:
Married Filing Jointly
Marginal Tax Brackets
Tax Rate Over But Not Over
0.0% $0 $3,670
11.0% $3,670 $5,940
12.0% $5,940 $8,200
14.0% $8,200 $12,840
16.0% $12,840 $17,270
18.0% $17,270 $21,800
22.0% $21,800 $26,550
25.0% $26,550 $32,270
28.0% $32,270 $37,980
33.0% $37,980 $49,420
38.0% $49,420 $64,750
42.0% $64,750 $92,370
45.0% $92,370 $118,050
49.0% $118,050 $175,250
50.0% $175,250 -
Reagan Must Have Been a Communist
DAR
Notice, Reagan had four brackets considerably higher than what Obama is proposing and the 42% kicked in at $64,750! (not adjusted for inflation)