Who actually paid 90 tax rate?
In 1944-45, during World War II, couples making more than $200,000 faced an all-time high of 94 percent. Sanders said income tax rates under Eisenhower were as high as 90 percent. A look through the records shows that top earners in the eight years of Eisenhower’s presidency paid a top income tax rate of 91 percent.Nov 15, 2015
Didn't Bernie Sander propose a 90% rate?
Not quite …
The origins of the claim are based on an interview with CNBC’s John Harwood.
Sanders: Radical socialist Dwight D Eisenhower was president. I think the highest marginal tax reach was something like 90.
Harwood: When you think about 90%. You don’t think that’s obviously too high?
Sanders: No. What I think is obscene and what frightens me is again, is when you have the top 1/10th of 1% owning almost as much wealth as the bottom 90%.
This statement led some claim that Sanders intended to raise the top marginal tax rate to 90%, which he has denied. The argument here is that a 90% top marginal tax rate has existed in the past (and with faster GDP and job growth than we see under today’s far lower top tax rates). Nevertheless, there is no indication that there was ever a plan to actually reintroduce this tax rate, and Sanders’ actual tax proposal has a top tax rate of 52% (placing closer to where it was during President Reagan’s time in office.
What was the top tax rate during the Eisenhower administration?
During the administration of Republican President Dwight D. Eisenhower, a 92 percent marginal income tax rate for top earners in the United States remained from the previous administration of Harry S. Truman. At the time, the highest tax bracket was for income over $400,000.
What does it mean to be taxed at 90% rate?
A 90 percent top marginal tax rate doesn’t mean that if you make $450,000, you are going to pay $405,000 in federal income taxes. Americans have a well-documented trouble understanding the notion of marginal tax rates. The marginal tax rate is the amount you pay on your income above a certain amount.