Economics Questions

Re: Obama says we have the "lowest taxes rates since the 1950s"?!

Kaiser — Thu, 07 Jul 2011 19:01:33 GMT

http://usgovernmentrevenue.com/revenue_brief.php

It would seem that the stimulus package and tax breaks contributed significantly to the fall in revenue, so I don't know who he's pointing fingers at. Taxes were at an all-time high in the late 90's so we'll be back to that soon enough. Of course spending is the more important thing to look at because it shows what we inevitably will be taxed:

http://www.usgovernmentspending.com/downchart_gs.php?year=1950_2010&chart=F0-total&units=p

Re: Obama says we have the "lowest taxes rates since the 1950s"?!

justintempler — Thu, 07 Jul 2011 16:04:49 GMT

What's missing from Obama's claim is the distinction between marginal tax rates and effective tax rates. Corporate tax rates in the 1950s allowed generous tax deductions. Picture Donald Draper and Roger Sterling (Mad Men) being able to take their families and that of their clients for a week long business trip to Hawaii and being able to claim it as a business expense.

So while you may have been in the 91% marginal tax bracket after deductions you might end up with an effective tax rate of 34%.

You also have to take into account that they didn't pay +90% on their entire income. they still paid 20% on their first $2,000 (remember this was the 1950s) 21% on the next $2,000, 24% on the next $2,000 etc.... It was a graduated tax with generous tax deductions.

Re: Obama says we have the "lowest taxes rates since the 1950s"?!

Bogart — Thu, 07 Jul 2011 14:19:29 GMT

The proponents of this idea that people in the USA pay the lowest tax rates are not telling the truth. First they are referring to percentages of GDP. Where does GDP come from? The government and is it in the governments interest to inflate the number? You betcha!!!! Secondly, the same folks are using the current version of income and not what people considered income during previous periods. Also, prior to the massive inflation after 1971, incomes of even the poorest folks have risen thus placing them in higher and higher tax brackets. To see the bracket creep look at the price of gold since 1971, in 1930 gold was $34 per ounce, $42 in 1971 and now >$1500.

But these proponents miss the one big difference between now and then. And it is easy to miss since the worst effect of government intrusion into the market place are unseen. That is that prior to 1982(Reagan cut taxes on the highest incomes from 70% to 28% then increased them to 33%) and even more so prior to 1960 (JFK cut taxes on the highest incomes from 90% to 70%) was that vast amounts of savings was wasted as the wealthiest folks stored their savings in untaxable assets like municipal bonds. Now the wealthiest store significantly more of their savings in assets more available to the entrepreneurs that make the economy go.

Obama says we have the "lowest taxes rates since the 1950s"?!

Brutus — Thu, 07 Jul 2011 14:08:33 GMT

http://www.youtube.com/watch?v=Ii8A-cUi0rs

Go to the 36:25 mark. Obama says, "We actually have the lowest tax rates since the 1950s." Anyone have any charts to disprove this?

And for kicks, click on the 24:15 mark and watch a bumbling fool use misdirection and an ad hominem attack to attempt to discredit the question and sway the audience instead of actually answering it. It's pathetic. He really is a moron.