Joe Biden is proposing ONE SMALL STEP in the direction of a partial return to the taxation and economic policies that powered the most prosperous period of our nation’s history. Biden is proposing higher marginal tax rates on the highest levels of income for the few richest elites and corporations, as well as tightening enforcement of the existing tax laws for those at the top.
No tax increases Biden has proposed will reach anyone making less than $400,000 a year and in recent days some of Biden’s top economic advisors have given interviews explaining exactly how proposed increases at the top and closing loopholes will fully cover his spending proposals — spending proposals that INVEST in infrastructure designed to fuel economic productivity and further pay for itself by expanding the tax base and creating a larger pie for everyone.
The greatest period of broad-based, widespread middle class prosperity was a combination of strong pro-labor policy (strong unions and minimum wage policy), strong consumer protection and, yes, equitable taxation — lower taxes on working people and higher MARGINAL tax rates on the PORTION of income that reached up to elite levels of wealth.
From 1951 to 1964, the top marginal rate (out of 13 brackets) fluctuated between 90% and 94%; never below 90%. The wealthy only paid the top rate on the PORTION of income in the top income layer (bracket), after deductions.
In 1963 JFK proposed lowering the top marginal rate to 70%, which his successor, LBJ enacted in February of 1964.
From 1964 to 1981 the top marginal rate was mostly 70%, though for a while LBJ raised it to 77%.
This combined period from 1951 to 1980 was the period of GREATEST ECONOMIC GROWTH and broad-based, widespread middle-class prosperity in our nation’s economic history.