Your current web browser is outdated. For best viewing experience, please consider upgrading to the latest version.

Donation - Other Level

Please use the quantity box to donate any amount you wish. Sign Up to Donate

Contact Heather Mac Donald

Send a question or comment using the form below. This message may be routed through support staff.

Email Article

Password Reset Request

Register


Add a topic or expert to your feed.

Following

Follow Experts & Topics

Stay on top of our work by selecting topics and experts of interest.

Experts
Topics
Project
On The Ground
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed

Manhattan Institute

search
Close Nav
Share this issue_brief on Close

Revisiting the High Tax Rates of the 1950s

issue brief

Revisiting the High Tax Rates of the 1950s

By Arpit Gupta April 10, 2013
EconomicsOther

In the heated political debate that Americans are having about federal spending and revenue, advocates of higher taxes often cite the 1950s as a Golden Age. Then, it is claimed, the wealthy paid higher federal taxes and the system was fairer. A closer look at the facts, however, does not support this assertion.

In fact:

  • In the 1950s, very few people paid the very high income-tax rates aimed at the wealthiest.
  • Claims that wealthy people paid more taxes rest instead on the assumption that the rich, as stock owners, bore the entire burden of higher corporate taxes of that era. There are good reasons to doubt this assumption about corporate taxes.
  • Even if we leave these assumptions unchallenged, the economy of the 1950s was so different from our own that its tax structure cannot be reproduced today.
  • The most plausible viable paths to higher taxes in today's economy would render the tax system less fair, not more so.

READ FULL REPORT

Saved!
Close