It Ain't Fair

Corporate America is shutting average Americans' voices out, while they help themselves to taxpayer dollars. The economic playing field is tilted against the middle class — and we have the power to change that.

tax rates, and GDP growth

GDP and Tax Rate (updated version)

     If you Google tax rates and GDP growth, you can find all sorts of arguments, pros, and cons about higher and lower tax rates for corporations and individuals. But I believe that the proof is in the pudding. 

     In 1950 the top income tax bracket applied to any income over $200,000, and the top tax bracket was 91%. The GDP growth from 1950 to 1959 was 42%.

     In 1960 the top income tax bracket applied to any income over $400,000, and the top tax bracket was 91%. The GDP growth from 1960 to 1969 was 45%

     In1970, the top income tax bracket applied to any income over $200,000, and the top tax bracket was 70%. The GDP growth from  1970 to 1979 was 32%

     In 1980 was the same as in 1970 except the GDP growth was 31%

     I’m going to skip 1990 as there were some anomalies.

     In 2000 the top income tax bracket applied to any income over $288,000, and the top tax bracket was 40%. The GDP growth from 2000 to 2009 was 19%.

     In 2010 the top income tax bracket applied to any income over $373,000, and the top tax bracket was 35%. The GDP growth from 2010 to 2019 was 23%.

     I know this is a very complicated issue, and many factors can move these numbers, like weather, recessions, world problems, wars, and on and on. But the conservatives have always argued that lowering tax rates, small government, and less regulation will lead to a higher GDP and more productivity, and higher wages.

     In the 1950s, corporate taxes accounted for 30% of government revenue. By 2012 it had fallen to 10%, and by 2019 it was 6.6%.

     Both individual and corporate taxes have gone down since 1950. 

     Where is our growth, and where are the higher wages?

1 COMMENTS

  1. Oh boy ! I am patiently awaiting my share of the big wave of increased wages, decreased taxes & explosive upward standard of living the GOP has always promised ! ( Been waiting a long, long time for the $$$ to wash over me, saturating me with the increased wealth they have told me to get ready for. )

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