Could a Progressive Tax System make the Rich/Wealthy Business Owners who own and run the means of pr

Could a Progressive Tax System make the Rich/Wealthy Business Owners who own and run the means of production could higher taxes on them make the Rich Business Owners Poor or cause them to run out of money why or why not ? The reason Im asking this question is because during World War Two and after the War the Tax Rate on the Rich/Wealthy was over 90% than it became 70% ? What Im really trying to ask is could a Progressive Income Tax make all Incomes equal ?


Karl Marx and Frederick Engels
Manifesto
of the Communist Party

1848

II -- PROLETARIANS AND COMMUNISTS

2. A heavy progressive or graduated income tax.

www.anu.edu.au...

reply to post by mikejohnson2006
Please research the tax rate you claim was 90%. I am getting tired of explaining to people why that is basically a lie or at most a half truth.

the US gives away more in tax breaks and credits than it takes in, so I guess my question is what does it matter what the stupid little tax chart says we should be paying, very few of us are paying that much!!!
and those tax breaks and credits go to the rich and business people just as much, maybe more, as they go to us pions...
I'd be happy with a nice simple tax code that one doesn't have to pay HR block a couple hundred (more if you are running a business) to interpret and fill out your tax forms at the end of the year..
if you think about it, a tax code that actually gives rewards to people and businesses more than it taxes them has to have some pretty deep rooted problems to it! and well, seems to me means our tax system isn't working at the present time.

Care to post any proof that the tax rate was ever anywhere near 90% for wealthy people? Or do you mean something else?

So, if someone made 100 million dollars, they would owe 90 million dollars in taxes? Evidence?

As far as taxes go, the current system is ridiculous. It's easy to abuse, and is far too complex. Make it simple. Everyone owes 17% of their income to taxes. Everyone. No cut-off for the rich, that allows you to have untaxed income over a certain amount. If you make 100 million, you pay 17% of 100mil, not 17% of 100 grand, and then nothing after that.

The myth that rich people are over-taxed is just that, a myth. They may pay more in taxes than poor people, obviously, but that's because they make more money. When you look at actual percentage of their income they pay to taxes, rich people don't pay squat. And I'm not talking about people making a few hundred thousand a year, they aren't rich. I'm talking real rich people.

reply to post by James1982


According to this organization The top marginal tax rate hovered around 90% from 1942 until 1962.

While the IRS states the following:

In 1918, during World War I, the top rate of the income tax rose to 77 percent to help finance the war effort. It dropped sharply in the post-war years, down to 24 percent in 1929, and rose again during the Depression.

A marginal tax is not the same as an effective tax, as shown here.

In fact, as a single filer earning $100,000 in taxable income, she’ll owe $21,720 in taxes for 2009, which means her effective tax rate will be 21.72% — not 28%.

So while the top marginal tax rate was around 90% for 20 years, the effective tax was usually much less. This also goes for todays top tax rate of 35%. After deductions, rebates and the like, a wealthy individuals effective tax rate is lower than 35% of their total earnings.

reply to post by links234


Thanks for the link.

So when sonofliberty said :

that is basically a lie or at most a half truth.

He was right