Thomas E. Woods, Jr., is the New York Times bestselling author of 11 books, including The Politically Incorrect Guide to American History and Meltdown (on the financial crisis). A senior fellow of the Ludwig von Mises Institute, Woods has appeared on MSNBC, CNBC, FOX News, FOX Business, C-SPAN, Bloomberg Television, and hundreds of radio programs... (Read More)

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Schiff on the 91% Tax Rate Propaganda

7th December 2012      by: Tom Woods     

You may have figured out that this issue drives me up a wall; here’s my own take on the subject. Now here’s Peter Schiff in the Wall Street Journal smacking down the increasingly conventional claim that “the rich” paid 91% marginal income tax rates in the past, and we had a super economy.

Unlearn the Propaganda!

  • michael Fleischer

    the thing with this topic is this…liberals wont be satisfied until they are shown real actull tax returns. Much of what austrians and free market types like us say is dismissed until we can produce hard date. my favorite myth busting activity for instance is hearing someone say something about the “clinton surplus” and then point them to the US treasury’s actuall website to show them that the total indebtedness actually increased during every year of clintons two terms.
    So it is with this issue. People out there still assert that the so called 1-2% highest wage earners had an EFFECTIVE tax rate in the 60 percent range. This might have been true for some fabulously wealthy people at the time who actually had some income subject to the 91 percent rate but for most better off people their effective rate was 20-30 percent. A perfect example is to look up the details of the finances of George Romney…yes Mitt Romneys father who ran for president and released all his tax returns. He was quite a well off man and have a lot to charity but his total effective tax rate was 20-25 percent most years despite falling into the 60 percent bracket.
    Anyway I, trying to find who has done the best work on this and really published actuall tax returns and hard IRS data showing how much the gov actually collected in each of these brackets in the 1955-1963 period before JFK lowered taxes. Also missing from ,most liberals understanding is the fact that all kinds of things were deductible and there was a whole tax shelter industry…
    anyway I glad that the austrian community is taking this up because this is another one of those liberal bugaboos that the left harps on so much “oh if only we would go back to the glory days of the 1950′s when the rich paid so much more ” …They have no idea what they are talking about. Krugman as usually least of all.

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