Reagan's Tax Cuts
Over at SA we Nattered: Fiwiki, I responded to your comment below first because I know what the DIDMCA affected. Now we connect the dots.
"The Reagan Administration removed the income tax liability of millions of lower and lower middle class americans, but without the power to repeal their right to vote."
As a result of the 1981 ERTA (Kemp Roth) top income tax rate cut 70 to 50, lower cut 14 to 11.
As a result of the 1981 and 1986 bills, the top income tax rate was slashed from 70% to 28%.
Two bills passed in 1982 and 1984 together constituted the biggest tax increase ever enacted during peacetime. Not by hiking individual income tax rates, by making it tougher to evade taxes, by reducing various federal tax breaks and closing tax loopholes. Here, high income tax filers who previously paid little ended up with bigger tax bills. All told, the tax increases Reagan approved ended up canceling out much of the reduction in tax revenue that resulted from his 1981 legislation.
Bottom line: As a result of ERTA and other tax acts in the 1980s, the top 10% were paying 57.2% of total income taxes by 1988—up from 48% in 1981—while the bottom 50% of earners share dropped from 7.5% to 5.7% in the same period. The total share borne by middle income earners of the 50th to 95th percentile decreased from 57.5% to 48.7% between 1981 and 1988. The 1986 act produced a 33% marginal rate for the upper middle class. Individual income tax cuts costing $288 billion over five years were paid for not only by curbing individual tax breaks, but also by raising $120 billion extra from corporations, tax shelters and arbitrage. taking six million poor families off the income tax rolls. Again your original quote...
"The Reagan Administration removed the income tax liability of millions of lower and lower middle class americans, but without the power to repeal their right to vote."
I do not agree with no representation without taxation.
"The Reagan Administration removed the income tax liability of millions of lower and lower middle class americans, but without the power to repeal their right to vote."
As a result of the 1981 ERTA (Kemp Roth) top income tax rate cut 70 to 50, lower cut 14 to 11.
As a result of the 1981 and 1986 bills, the top income tax rate was slashed from 70% to 28%.
Two bills passed in 1982 and 1984 together constituted the biggest tax increase ever enacted during peacetime. Not by hiking individual income tax rates, by making it tougher to evade taxes, by reducing various federal tax breaks and closing tax loopholes. Here, high income tax filers who previously paid little ended up with bigger tax bills. All told, the tax increases Reagan approved ended up canceling out much of the reduction in tax revenue that resulted from his 1981 legislation.
Bottom line: As a result of ERTA and other tax acts in the 1980s, the top 10% were paying 57.2% of total income taxes by 1988—up from 48% in 1981—while the bottom 50% of earners share dropped from 7.5% to 5.7% in the same period. The total share borne by middle income earners of the 50th to 95th percentile decreased from 57.5% to 48.7% between 1981 and 1988. The 1986 act produced a 33% marginal rate for the upper middle class. Individual income tax cuts costing $288 billion over five years were paid for not only by curbing individual tax breaks, but also by raising $120 billion extra from corporations, tax shelters and arbitrage. taking six million poor families off the income tax rolls. Again your original quote...
"The Reagan Administration removed the income tax liability of millions of lower and lower middle class americans, but without the power to repeal their right to vote."
I do not agree with no representation without taxation.
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