President Barack Obama is expected this week to call for a tax hike for the wealthy as part of a budget proposal that will also include cuts to Medicare and Medicaid.
The country’s highest tax bracket has been at 35 percent since 2003, the lowest it’s been since 31 percent in 1992. Historically, it has been much higher at several points, including 50 percent from 1982 to 1986, 70 percent from 1965 to 1981, and 92 percent in 1952 and 1953. See historic tax brackets.
The middle class is not expected to be targeted in Obama speech scheduled for Wednesday. But it’s worth noting that the family of four with the median income has been paying a lower percentage of its total income in federal income tax in the past three years than at any time since at least 1955. See the chart – look at the “Average income tax rate” column, which takes into account gross income as well as various tax breaks.
Read the Washington Post story on Obama’s expected budget proposal for the upcoming fiscal year and beyond, which includes more cuts than he’s previously proposed and serves as a counter to the Republican proposal put forth by Rep. Paul Ryan, who is also calling for Medicare cuts.
Three other historic tax notes:
The lowest income tax bracket has been 10 percent since 2002, the lowest since 1941.
The total of all taxes paid by Americans as a percentage of income is estimated to be at 27.7 percent this year, up from 26.9 percent last year and 26.6 percent in 2009. But those three years represent the lowest percentage since the 1960s, thanks to a combination of the recession, low tax brackets and special tax breaks like this year’s 2-percent payroll tax reduction. See the chart from the Tax Foundation.
All taxes in California as a percentage of per capita income was 10.6 percent in 2009, the last year calculated by the Tax Foundation. That’s just slightly higher than the 10.3 percent average since 1984. But it ties California for the fourth highest rate nationwide.
No comments:
Post a Comment