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JHB

(38,135 posts)
8. Not just the rates, the distribution is even more important IMO...
Sun Nov 3, 2013, 12:54 PM
Nov 2013

Taking the 1955 tax brackets (married couple filing jointly) and adjusting for inflation:
24 tax brackets total, ranging from 20% to 91%
16 of them only affected incomes above $250,000
11 of those only affected incomes above $500,000
The top rate kicked in for income over ~$3.4 million.

Compare that to now:
7 tax brackets total, ranging from 10% to 39.6%
2 of them only affect incomes above $250,000
0 of those only affect incomes above $500,000
The top rate kicks in for income over ~$440,000.

And that was after the fight to add one more bracket at the top. Otherwise, replace the top rate with 35%, cut one bracket from the total and "above 250K", and the top rate kicked in at ~$388K.

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