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The Revenue Act of 1935, 49 Stat. 1014 (Aug. 30, 1935), raised federal income tax on higher income levels, by introducing the "Wealth Tax". It was a progressive tax that took up to 75 percent of the highest incomes.[1]
It was signed into law by President Franklin D. Roosevelt.
The 1935 Act also was popularly known at the time as the "Soak the Rich" tax.[2] To solve the problem of tax evasion through loopholes, the Revenue Act of 1937 revised tax laws and regulations to increase the efficacy of the tax.[1]
Contrary to the impression left by historians, neither welfare expansion nor welfare reform died in the 1950s. Even conservatives believed in the necessity of federal spending for welfare. Disagreements came over the proper ways to spend federal money. The Eisenhower administration propagated a rehabilitation approach in an attempt to use federal money to end individual, state, and local dependence on the federal government. The administration's 1954 social security and vocational rehabilitation laws reflected this approach. Bureaucrats in the Department of Health, Education, and Welfare, working with a Democratic Congress, managed to extend the 1954 laws into a major expansion of federal power, as the passage of disability insurance in 1956 demonstrated. Institutional continuity, not heroic individual effort, provided the dynamic for welfare reform in the 1950s.
In fact, researchers found that when the top earners in society make more money, it actually slows down economic growth. On the other hand, when poorer people earn more, society as a whole benefits.
The researchers calculated that when the richest 20% of society increase their income by one percentage point, the annual rate of growth shrinks by nearly 0.1% within five years.
This shows that "the benefits do not trickle down," the researchers wrote in their report, which analyzed over 150 countries.
By contrast, when the lowest 20% of earners see their income grow by one percentage point, the rate of growth increases by nearly 0.4% over the same period.
originally posted by: Krazysh0t
a reply to: FamCore
As Sremmos pointed out, that is just one guy's opinion. Albeit a very smart guy, but it is still just an opinion. It should be noted that unemployment is at a low, GDP is at a high, and more jobs exist now than did pre-08 numbers.
PS: Some may call Obamacare Socialist, but it's not. Obamacare is a capitalistic perversion of Socialism. Not that capitalism can't exist alongside Socialism (it totally can as the last 80 some years has proven in this country), but Obamacare is just a monstrosity and the worst of both worlds.
originally posted by: burdman30ott6
a reply to: Krazysh0t
It should also be noted, since this is the history forum, that the way unemployment is calculated routinely changes to ensure that it doesn't look too bad on the official tally. If we were calculating unemployment the same way it was calculated 50 years ago, it hasn't budged much since 2009.
On January 9, the US government told Americans that the unemployment rate had fallen to a comforting 5.6 percent, an indication that the Federal Reserve’s policy of Quantitative Easing was successful in restoring the US economy...
...the 5.6 percent unemployment rate (U.3) does not include unemployed people who have not looked for a job in the previous four weeks. These unemployed are called “discouraged workers.” If they have been discouraged for less than one year, they are counted in a seldom-reported measure of unemployment (U.6). This rate stands at 11.2 percent
originally posted by: burdman30ott6
a reply to: Krazysh0t
It should also be noted, since this is the history forum, that the way unemployment is calculated routinely changes to ensure that it doesn't look too bad on the official tally. If we were calculating unemployment the same way it was calculated 50 years ago, it hasn't budged much since 2009.
originally posted by: Metallicus
a reply to: Krazysh0t
PS: Some may call Obamacare Socialist, but it's not. Obamacare is a capitalistic perversion of Socialism. Not that capitalism can't exist alongside Socialism (it totally can as the last 80 some years has proven in this country), but Obamacare is just a monstrosity and the worst of both worlds.
It is a craptastic bastardization of both Socialism and Capitalism. The wealth is redistributed to the insurance companies and poor people get coverage, but everyone else gets screwed. You can't blame anyone but Democrats for Obamacare. They own it and not one Republican voted for it...and yes, it sucks.