If high taxes are bad for the economy, explain the 1950s?

Throughout the 1950s, the top marginal income tax rate was over 90% and yet American Capitalism and Commercialism thrived throughout that decade, seemingly un-phased by "job-killing high taxes". So, if high taxes are bad for the economy, how did the 1950s happen?

rock n' roll

Explain the Clinton economic boom times as well.. The fact remains, tax cuts don't create jobs, they are job NUETRAL. Even corporate/buisness taxes are job neutral. Demand/innovation are the primary drivers of job growth

I blame the baby boom. Consumers spent like crazy on their new babies, and the economy subsequently grew very quickly. Remember the US economy is 70% consumer spending.

high taxes are neither good nor bad for the economy. The more pertinent question is would the economy have been weaker or stronger had taxes been lower in the 1950s?

The number of people in the 90% category could be counted on one hand in the 1950s. the categories then are simply not comparable to the categories now.

If taxes are good for the economy, explain why communism and socialism (where the government gets all/most of the money and redistributes it, instead of only getting some) fails every time and why capitalism where the government gets the least amount of money does the best? How is that possible? And to answer you question, because nobody actually paid 90% and the tax rate is not the only factor in an economy.

History shows that no matter how the taxes are set up the IRS will only receive 19% of GDP. The problem is that at present the Federal government is spending 100% of GDP. Even now the Fed is receiving 19% of GDP. 1950's the Fed was spending 22% of GDP

Simple. In the 50s practically everything sold in the US was manufactured in the US. There were plenty of jobs for everyone. Stuff was exported all over the world which brought lots of income. Then some geniuses decided the US would be better of with a service economy and practically all manufacturing was sent out to places all over the world. Now our main industry is switching money from one pocket to the other, somehow magically making it grow and the only people making it big are Banks and investment brokers. Try finding such a high tech item as a toaster that says "Made in USA" on the bottom. As soon as an American inventor comes up with something new it is shipped to China for manufacture.

YOU, m'dear, are a LIAR. And I will PROVE it with FACTS, of you dare to read further... I remember my parents telling me that my father had "promised" to his future father-in-law (when he asked for Mom's hand in marriage) that he was going to earn an annual salary of $10,000. That was in 1951, and my grandfather LAUGHED at him in total disbelief. The average annual HOUSEHOLD (as opposed to PERSONAL) income in 1950 in the USA was... are you ready for this... $1,500 !!! (see PDF file below). Your question, however, is extremely self-serving and misleading. Why? Because if you actually LOOK at the Federal Income tax TABLE for 1950 (see second link below), the ACTUAL TAX RATE for those earning the AVERAGE annual income of $1,500 was only 17.4%... NOT 90%. Oh, and the top rate in 1950 was 84%, not 90%. But in order to be taxed at 84%, you would have to be earning an annual income of over $400,000. Now... even THESE DAYS, that is not anywhere NEAR an AVERAGE annual income! So, let's STOP PLAYING FAST AND LOOSE with the FACTS, shall we? The vast majority of the population paid only about 17% income tax during the 1950's. That sounds mightly REASONABLE to anyone, and most people today would be GRATEFUL to pay ONLY 17% income tax. Just to make comparisons a bit more "modern"... 1999 average annual income was $28,500, and that would put a person in the 28% tax bracket.... that's an effective increase of 64% more in taxes than in 1950 for the AVERAGE American. My advice to you.... STOP believing liberal HYPE and start READING the ACTUAL HISTORY! 1. REPEAL the 16th Amendment!! 2. DISBAND The FED! 3. since before she was born… and PROUD of it.

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