Source: Tax Policy Center
Let’s take a look at the tax rate the IRS imposes on America’s top income bracket (currently individuals making over $500,000 or couples making over $600,000). Between 1930 and 1980 the average marginal tax rate for top earners was 78 percent. From 1951 to 1963 it was more than 90 percent.
The most dramatic change in recent times was in 1980, right when Reagan was elected. When he took office the top tax rate was 70 percent. By the time he left office in 1988 it had been slashed to 28 percent. Today it is 37 percent.
To put this data into context, check out this post looking at the consequences of tax rates for income inequality: Was the American Economy ever Great?
