Reports from the Economic Front

a blog by Marty Hart-Landsberg

Some Facts About Taxes And The Rich

To hear the rich and their representatives talk you would think that they are facing an ever increasing, unprecedented, and unfair tax burden.  Quite the opposite is true.  Income inequality has soared, the tax burden on those at the top has plummeted, and majority working and living conditions have steadily deteriorated.

The website visualizingeconomics.com offers the following picture of trends in top federal marginal tax rates.   As one can see, the top tax rate has fallen substantially.  And it will remain quite low by historical standards even if President Obama allows the Bush-era tax cuts to expire in 2011.

tax_rate-chart550.gif

To be clear: we are looking here at the top marginal federal tax rate.  In other words it is the federal tax rate applied to income that exceeds the top bracket (we currently have six tax brackets, each with higher tax rates).  Currently the top bracket begins at $373,650.  Thus, the top tax rate is the rate at which income above $337,650 is taxed.

You can see a history of US tax rates and brackets here.

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