FAIR TAX RATES: HERE'S WHAT WASHINGTON DOESN'T UNDERSTAND

WISDOM FROM THE ANNALS OF HISTORY

25 Years of Prosperity Following WW II;

How did that happen?

By S.C. Burns

Historian, Author

GREAT DEPRESSION AND WORLD WAR II:  FDR INCREASES DEFICIT SPENDING AND INCREASES PERSONAL INCOME TAX RATES

History teaches us that this nation has survived thus far because wealthy patriots were willing to pay for revolution and reform:  1) for the American Revolution, in its entirety; 2) to provide loans to the federal government, before the Federal Reserve was created in 1913 (J.P. Morgan was the lender); 3) paying increased taxes during World War II, to assure democracy and capitalism survive, AND pull the economy out of depression; and finally, 4) to help pay for the war effort, without complaint.  It wasn’t merely production for World War II which pulled the United States solidly out of the Great Depression.  FDR was given unprecedented powers under the first two War Powers Acts (1941 and 1942) to set wages and prices, extend loans to existing defense industry contractors, forbid union strikes, and fund round-the-clock production for the war effort (three eight-hour shifts), building aircraft and ships.  Automaker Henry Ford dedicated his plant entirely to the production of automobiles for the military.  No new automobiles were built for private consumption during the war.  AND, by the end of World War II, the highest tax rate for wealthy individuals was set at 94%. AND GUESS WHAT—WORLD WAR II WAS A POPULAR WAR AND AN EXTREMELY PATRIOTIC ERA IN OUR COUNTRY’S HISTORY.  U.S. CITIZENS WERE WILLING TO WORK AND SACRIFICE, IN ORDER TO INSURE THAT CAPITALISM AND DEMOCRACY WOULD SURVIVE!  WHAT HAS HAPPENED TO THAT SPIRIT?

 THAT’S NOT THE END OF THAT STORY EITHER.  The tax rates for the top tier wealthy Americans remained at high levels for the 35 years following the end of the war, helping to explain the post WW II period of prosperity (which also produced the Baby Boom). In the 1950s, the graduated tax table identified 25 different rates: the lowest rate was 17.4% for those who earned $0 to $4,000, and the highest individual income tax was 84.357% for those who earned $400,000 - and over.  In the 1960s, there were 24 tax brackets.  The lowest group paid 20% for those who earned from $0 to $4,000.  The highest bracket was 91%, for those who earned $400,000 or over.  In the 1970s, there were again 25 tax brackets.  The lowest brackets was $0 to $1,000, and they paid 14%.  The highest rate was 71.75% for those who earned $200,000 and over.  In 1980, there were 16 tax brackets.  Those who earned $0 to $3,400 paid 0% in taxes.  Those who earned $3,400 to $5,500 paid 14%.  Those who earned $215,400, and over, paid 70% in taxes.  THEN THE SO-CALLED REAGAN REVOLUTION BEGAN, AND THE FIRST EXTENSIVE TAX CUT SINCE PRIOR TO WORLD WAR II OCCURRED.  

READ THE REAL STORY OF THE “REAGAN REVOLUTION” NEXT WEEK (the same man who offered amnesty to all illegal aliens who entered this country before 1982).  https://www.npr.org/templates/story/story.php?storyId=128303672

WISDOM FROM THE ANNALS OF HISTORY; Why isn't anyone talking about the huge national debt?

 WISDOM FROM THE ANNALS OF HISTORY

(aka:  We can restore democracy in the United States, if we try)

By S.C. Burns
Historian, Author

September 19, 2018
 
My first blog/My first question:  Can we restore integrity in Washington, D.C.; and why isn't anyone talking about the huge national debt?

In the famous words of Meryl Streep (in the movie, Doubt), I have doubts!  In fact, I have HUGE doubts and fears about the character of people working within the Washington D.C. beltway today.  Why have common sense, logical rationale and integrity become so "yesterday" in the United States of Trump?  With the passing of John McCain, I fear there are no free-thinking Republicans, willing to work for the American people, hands across the aisle, rather than working for their pocketbooks and re-election concerns.  

I also fear there are very few legislators--period--who are concerned about the U.S. economy.  The Republicans point to a low unemployment rate, the GDP, the GNP, but nothing about that rapidly clicking debt clock (visit daily at http://usdebtclock.org/), which reveals the largest national debt by any country in the history of the world!.  Democrats are not talking about it either. They have so much evidence to work with, to prove the current administration is leading the U.S. down a path to economic ruin.  However, they seem content to stand by and let Trump and friends hang themselves.  The problem is that, along with revealing this administration's corruption, the current Republicans are punishing the middle and lower class working folks.  Between destroying a workable health care plan and structuring a tax code which rewards the wealthy, especially the top 1%, they have, de facto, increased personal income taxes for the majority of Americans.  Yes, Trump lured you into "loving" this package by stating that the standard deduction is so simple, you will be able to file your taxes on a postcard.  He is hoping you opt for simplicity, rather than survival. In reality, this plan takes away deductions which are essential to many independent contractors'/laborers' only method to pay for their ability to labor: travel deductions and more.  Trust me--this is not a fair exchange!  You will discover this when you file your taxes for 2018.

As a teaching historian (at the college/university level), having taught for 24 years, I am accustomed to gathering empirical evidence to prove workable solutions.  I ask you honestly, when did the empirical method become so passé?  I've had it.  I'm throwing down the gauntlet and insisting that everyone--yes, Congresspersons and Senators--learn a few lessons from HISTORY.  My weekly blog will prove to you--from U.S. History--that governments which work for the people, all the people, create a truly prosperous nation.