Skip to main content
No. of Recommendations: 0
The biggest point is that unless we up the rate on the wealthy now they will pay much more later......we need to get on with raising their taxes.....and lowering our's.....

...The effective rate on the wealthy, upper middle class and middle class from what I have seen is 20% on average for each class. When the deductions, loopholes and capital gains are all counted up and figured for each group that is what we get, a 20% average....

Hi Dave!

My response had nothing to do with the merits or demerits of a potential tax hike on the "rich" or anyone else; rather it was in response to your citing a 92% top rate under Truman in a prior post.

My point was that the top rate doesn't really matter--what matters is the effective tax rate

Here are the top Federal tax rates by year:

You will note that that from 1979 to 2007, the top rate ranged from a high of 70% in 1979 to a low of 28% in 1988.

Yet, the effective tax rates actually paid for the top 10% during that same period varied in a much narrower range: from 30.1% in 1996 to a low of 24.3% in 1986.

Hope that helps explain my point.

As to your statement about the rate being about 20% for the "wealthy, upper middle class and middle class"....well, I sure don't see it in the charts. Perhaps you mean total taxes, including Federal, state Social Security, Medicare, sales, excise, etc?

Home Fool
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.