Income Tax Rates Reagan

The highest federal income tax bracket in 1980 which included those households earning 215 400 or more had a marginal tax rate of 70.

Income tax rates reagan. At the time the 70 percent rate didn t. When the tax cuts were finally put into the tax code one of the longest peacetime. The 1986 act set tax rates on capital gains at the same level as the rates on ordinary income like salaries and wages with both topping out at 28. A marginal tax rate of 70 does not mean that for example.

Reagan took away those deductions which wasn t a big. That was much less than the 1980 top tax rate of 70 for individuals earning 108 300 or more. Anyone making less paid no taxes at all. In 1986 reagan lowered individual income tax rates again this time in landmark tax reform legislation.

The democrats of today should consider what the democrats of 1980 knew. That meant that many middle class citizens were in. In 1980 reagan promised those cuts and over his next 2 terms he cut taxes to the lowest since the 1920s when the top personal income tax rates were lowered from 73 to 25 in the revenue act of 1921 the revenue act of 1924 and the revenue act of 1926. This means that these brackets applied to all income earned in 1979 and the tax return that uses these tax rates was due in april 1980.

In the 1960s the tax brackets on the high end started to disappear and during ronald reagan s presidency we went down to just two brackets. By reagan s last year in office the top income tax rate was 28 for single people making 18 550 or more. Reagan cut tax rates enough to stimulate consumer demand. The top marginal tax rate generates very little income for the federal government.

For example before reagan the interest you paid on your credit card balance car loans etc was deductible on your federal income taxes. Both federal tax brackets and the associated tax rates were last changed two years prior to 1980 in 1978. A study by economist larry lindsey found that the rate cuts for the highest income.