Again I throw in a twist (that maybe by design) women were encouraged to stay on in the workforce after the devastation that two World Wars in one century wrought on human civilization. With a new supply shortage and a huge demand (in America, her industry unhindered from the war) there was not a large a threat of competition for jobs (i.e. Great Depression before the War) and women began flooding the job market. With this new found independence it was, of course, liberating. But let's not forget as prosperity grew in America you now have the entire adult population as a income tax base.
The result for the economy at large is the cost of everything goes up as now there is nearly double the demand for limited goods. Trend this out for a generation or two and wallah, we are now 'forced' to survive on a two income family (latch key kids, high divorce, poor health, and competition instead of cooperation in the home).
See below:
History of top rates
* In 1913 the tax rate was 1% on taxable net income above $3,000 ($4,000 for married couples), less deductions and exemptions. It rose to a rate of 7% on incomes above $500,000.
* During World War I the top rate rose to 77%; after the war, the top rate was scaled down to a low of 25%.
* During the Great Depression and World War II, the top income tax rate rose again. In the Internal Revenue Code of 1939, the top rate was 75%. The top rate reached 94% during the war and remained at 91% until 1964.
* In 1964 the top rate was decreased to 70% (1964 Revenue Act), then to 50% in 1981 (Economic Recovery Tax Act or ERTA).
* The Tax Reform Act of 1986 reduced the top rate to 28%, at the same time raising the bottom rate from 11% to 15% (in fact 15% and 28% became the only two tax brackets).
* During the 1990s the top rate rose again, standing at 39.6% by the end of the decade.
* The top rate was cut to 35% and the bottom rate was cut to 10% by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA).
some common sense prevailing on both sides.
Again I throw in a twist (that maybe by design) women were encouraged to stay on in the workforce after the devastation that two World Wars in one century wrought on human civilization. With a new supply shortage and a huge demand (in America, her industry unhindered from the war) there was not a large a threat of competition for jobs (i.e. Great Depression before the War) and women began flooding the job market. With this new found independence it was, of course, liberating. But let's not forget as prosperity grew in America you now have the entire adult population as a income tax base.
The result for the economy at large is the cost of everything goes up as now there is nearly double the demand for limited goods. Trend this out for a generation or two and wallah, we are now 'forced' to survive on a two income family (latch key kids, high divorce, poor health, and competition instead of cooperation in the home).
See below:
History of top rates
* In 1913 the tax rate was 1% on taxable net income above $3,000 ($4,000 for married couples), less deductions and exemptions. It rose to a rate of 7% on incomes above $500,000.
* During World War I the top rate rose to 77%; after the war, the top rate was scaled down to a low of 25%.
* During the Great Depression and World War II, the top income tax rate rose again. In the Internal Revenue Code of 1939, the top rate was 75%. The top rate reached 94% during the war and remained at 91% until 1964.
* In 1964 the top rate was decreased to 70% (1964 Revenue Act), then to 50% in 1981 (Economic Recovery Tax Act or ERTA).
* The Tax Reform Act of 1986 reduced the top rate to 28%, at the same time raising the bottom rate from 11% to 15% (in fact 15% and 28% became the only two tax brackets).
* During the 1990s the top rate rose again, standing at 39.6% by the end of the decade.
* The top rate was cut to 35% and the bottom rate was cut to 10% by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA).
http://en.wikipedia.org/wiki/Income_tax_in_the_United_States