Taxes and how they relate to the economic status of America

Checkout this table and notice how the tax rates for the wealthy were cut just before the Great Depression.

Trickle down economics didn't work then and it certainly isn't working now. The only way to have a viable economy is if the people have enough money to spend on goods and services, and to save and invest. Keeping 90% of the wealth in 6% of the population does not free up spending money for the working class.

Tax Rates1
Bottom bracket		Top bracket
Calendar Year	Rate (percent)	Taxable income up to	Rate (percent)	Taxable income over
1913-15	1	$20,000	7	$500,000
1916	2	20,000	15	2,000,000
1917	2	2,000	67	2,000,000
1918	6	4,000	77	1,000,000
1919-20	4	4,000	73	1,000,000
1921	4	4,000	73	1,000,000
1922	4	4,000	56	200,000
1923	3	4,000	56	200,000
1924	21.5	4,000	46	500,000
1925-28	21?	4,000	25	100,000
1929	24?	4,000	24	100,000
1930-31	21?	4,000	25	100,000
1932-33	4	4,000	63	1,000,000
1934-35	34	4,000	63	1,000,000
1936-39	34	4,000	79	5,000,000
1940	34.4	4,000	81.1	5,000,000
1941	310	2,000	81	5,000,000
1942-433	319	2,000	88	200,000
1944-45	23	2,000	594	200,000
1946-47	19	2,000	586.45	200,000
1948-49	16.6	4,000	582.13	400,000
1950	17.4	4,000	591	400,000
1951	20.4	4,000	591	400,000
1952-53	22.2	4,000	592	400,000
1954-63	20	4,000	591	400,000
1964	16	1,000	77	400,000
1965-67	14	1,000	70	200,000
1968	14	1,000	675.25	200,000
1969	14	1,000	677	200,000
1970	14	1,000	671.75	200,000
1971	14	1,000	770	200,000
1972-78	814	1,000	770	200,000
1979-80	814	2,100	770	212,000
1981	8 913.825	2,100	7 9 69.125	212,000
1982	812	2,100	50	106,000
1983	811	2,100	50	106,000
1984	811	2,100	50	159,000
1985	811	2,180	50	165,480
1986	811	2,270	50	171,580
1987	811	3,000	38.5	90,000
1988	815	29,750	1028	29,750
1989	815	30,950	1028	30,950
1990	815	32,450	1028	32,450
1991	815	34,000	31	82,150
1992	815	35,800	31	86,500
1993	815	36,900	39.6	250,000
1994	815	38,000	39.6	250,000
1995	815	39,000	39.6	256,500
1996	815	40,100	39.6	263,750
1997	815	41,200	39.6	271,050
1998	815	42,350	39.6	278,450
1999	815	43,050	39.6	283,150
2000	815	43,850	39.6	288,350
1 Taxable income excludes zero bracket amount from 1977 through 1986. Rates shown apply only to married persons filing joint returns beginning in 1948. Does not include either the add on minimum tax on preference items (1970-1982) or the alternative minimum tax (1979-present). Also, does not include the effects of the various tax benefit phase-outs (e.g. the personal exemption phase-out). From 1922 through 1986 and from 1991 forward, lower rates applied to long-term capital gains. 2 After earned-income deduction equal to 25 percent of earned income. 3 After earned-income deduction equal to 10 percent of earned income. 4 Exclusive of Victory Tax. 5 Subject to the following maximum effective rate limitations. [year and maximum rate (in percent)] 1994-45 - 90; 1946-47 - 85.5; 1948-49 - 77.0; 1950 - 87.0; 1951 - 87.2; 1952-53 - 88.0; 1954-63 - 87.0. 6 Includes surcharge of 7.5 percent in 1968, 10 percent in 1969, and 2.6 percent in 1970. 7 Earned income was subject to maximum marginal rates of 60 percent in 1971 and 50 percent from 1972 through 1981. 8 Beginning in 1975, a refundable earned-income credit is allowed for low-income individuals. 9 After tax credit is 1.25 percent against regular tax. 10 The benefit of the first rate bracket is eliminated by an increased rate above certain thresholds. The phase-out range of the benefit of the first rate bracket was as follows: Taxable income between $71,900 and $149,250 in 1988; taxable income between $74,850 and $155,320 in 1989; and t axable income between $78,400 and $162,770 in 1990. The phase-out of the benefit the first rate bracket was repealed for taxable years beginning after December 31, 1990. This added 5 percentage points to the marginal rate for those affected by the phaseout, producing a 33 percent effective rate. Source: Congressional Joint Committee on Taxation

source: http://www.hkmscpa.com/hist%20tax%20rates.htm