General Discussion

badtoworse

(5,957 posts)

55. The Economic Recovery Act of 1981 was an across the board cut.

Tue Dec 10, 2013, 12:18 PM

Dec 2013

That is a fact. Top rate dropped from 70% to 50% and the bottom rate dropped from 14% to 11%. While the rich got a reduction in tax rates, their share of the total tax load went up because the lower tax brackets did better on a percentage basis.

From the Wiki article: As a result of ERTA and other tax acts in the 1980s, the top 10% were paying 57.2% of total income taxes by 1988 - up from 48% in 1981[3] - while the bottom 50% of earners share dropped from 7.5% to 5.7% in the same period. The total share borne by middle income earners of the 50th to 95th percentile decreased from 57.5% to 48.7% between 1981 and 1988.["

http://en.wikipedia.org/wiki/Economic_Recovery_Tax_Act_of_1981

The Atlantic piece is too long for me to read now. I'll read it later.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

55 replies

= new reply since forum marked as read

Highlight:

Reaganomics is what happened to our economy [View all] Scuba Dec 2013 OP

Rec. Great Graphic........ Smarmie Doofus Dec 2013 #1

Center on Budget and Policy Priorities Wilms Dec 2013 #2

+1. n/t Smarmie Doofus Dec 2013 #4

Been saying that for 30 yrs FreakinDJ Dec 2013 #3

I wonder why they chose 1973 as a starting point and what would happen if they chose a different freedom fighter jh Dec 2013 #5

1974 Housing Bubble FreakinDJ Dec 2013 #7

pre- and post- oil embargo? eShirl Dec 2013 #8

blue loses after 1968 hfojvt Dec 2013 #47

I agree, the true bend point is 1969 Sirveri Dec 2013 #48

it's income though - not wages hfojvt Dec 2013 #51

K & R for the collosal failure & expecting the backlash to turn LEFT in a huge way, can you mother earth Dec 2013 #6

Think how good we would be doing if we were following the pre-Reagan graph right now! Dustlawyer Dec 2013 #9

I remember old Bushy calling it VOODOO economics.... Historic NY Dec 2013 #10

Instead of naming an airport after Reagan, MannyGoldstein Dec 2013 #11

Reagan's Debt! ReRe Dec 2013 #12

I think the REAGAN DEBT is better than Reagan's Debt. pangaia Dec 2013 #19

Yes.... ReRe Dec 2013 #32

BTW just to note hootinholler Dec 2013 #40

Sorry I didn't describe it accurately... ReRe Dec 2013 #46

Priceless..... pangaia Dec 2013 #44

Hedrick Smith reminds me of... ReRe Dec 2013 #45

Hey, Rupert Murdoch's billionaire donors paid for that privilege fair and square. Lasher Dec 2013 #13

The idea was not new. Government joined with corporations is fascism. And if the isn't good enough jwirr Dec 2013 #14

k&r for the truth, however depressing it may be. n/t Laelth Dec 2013 #15

A great successs... Gary 50 Dec 2013 #16

Exact.. sendero Dec 2013 #30

I can't recommend this enough times liberal N proud Dec 2013 #17

Who's Mow? pangaia Dec 2013 #20

Who's... Gary 50 Dec 2013 #21

What's on second. pangaia Dec 2013 #23

Actually started decade before RR econoclast Dec 2013 #18

Your graphic shows the 1% also suffered a decline beginning in ~ 1973 ... Scuba Dec 2013 #24

The decline for the 1% econoclast Dec 2013 #25

What happened in the early '70's was gas prices skyrocketing. What happened in 1982 was Reagan. Scuba Dec 2013 #26

Respectfully disagree econoclast Dec 2013 #41

The Economic Recovery Act of 1981 was an across the board cut. badtoworse Dec 2013 #55

Reaganomics was the beginning of the end for the middle class nt HelenWheels Dec 2013 #22

1981 CountAllVotes Dec 2013 #27

Exactly gopiscrap Dec 2013 #28

K&R Agree. nt stevenleser Dec 2013 #29

They lied all the way to the bank. KansDem Dec 2013 #31

IMO, what began happening to our economy around 1980 was inevitable badtoworse Dec 2013 #33

If the international labor market was the only consideration your theory would have more credence. Scuba Dec 2013 #34

Decades of high taxes and massive public spending would have preserved the economy? badtoworse Dec 2013 #35

Yes, a progressive tax system and public investment have benefited the economy .... Scuba Dec 2013 #36

Look at the attached graph from the St Louis Fed badtoworse Dec 2013 #37

Sure he cut taxes...for the top income earners. And then he raised taxes. Again and again and again progressoid Dec 2013 #49

If I recall correctly, income tax rates were cut across the board, not just on the wealthy badtoworse Dec 2013 #52

Yes, the initial cuts were across the board. progressoid Dec 2013 #54

Globalization moondust Dec 2013 #38

Revenue colsohlibgal Dec 2013 #39

All hail to Saint Ronnie, the gipper, whose deification is on the fast track. Glory be to indepat Dec 2013 #42

Yep kentuck Dec 2013 #43

Who Stole The American Dream - Video - Book cantbeserious Dec 2013 #50

I've Been Saying This For More Years Than ChiciB1 Dec 2013 #53