Essentially, the Republican dominated state government in Kansas significantly cut taxes, the ‘expected’ increase in revenue didn’t materialize, the quality and quantity of public services decreased, the state’s credit rating went down, and everyone got mad. After a few years, the governor was voted out of office and Republicans ‘saw the light’ and put the old taxes back in place. What’s wild is there are still conservatives who look at that and say ‘Well, you guys didn’t do it right. I still think it’s a good idea.’ If it were up to me, we’d go back to the tax levels we had when that antifa commie Marxist-Leninist far left extremist Eisenhower was in office.
Marginal Tax Rate on Regular Income over $400,000: 92% - 91%
Maximum Tax Rate on Long-Term Capital Gains: 25%
Romney’s Approx. Tax Bill: $5,250,000
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.
This was nearly the highest tax rate for top earners in the century, just under the 94 percent rate for income over $200,000 instated during World War II under Franklin D. Roosevelt’s presidency.
In 1954, the 92 percent marginal rate decreased to 91 percent under Eisenhower. The maximum tax on long-term capital gains was 25 percent – a rate that remained in place for a decade.
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Eisenhower explained it this way: The super rich could avoid the high taxes by investing their money in things that make America stronger. If they wanted to avoid high taxes, he said they could invest in business expansions and higher employee wages. They could give a million or two to tax-exempt non-profits that feed, house and clothe poor people of America, among other things.
Here’s a fun thing that happened at the state level when Republicans cut taxes.
The Kansas Experiment
Essentially, the Republican dominated state government in Kansas significantly cut taxes, the ‘expected’ increase in revenue didn’t materialize, the quality and quantity of public services decreased, the state’s credit rating went down, and everyone got mad. After a few years, the governor was voted out of office and Republicans ‘saw the light’ and put the old taxes back in place. What’s wild is there are still conservatives who look at that and say ‘Well, you guys didn’t do it right. I still think it’s a good idea.’ If it were up to me, we’d go back to the tax levels we had when that antifa commie Marxist-Leninist far left extremist Eisenhower was in office.
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