Tax Reform: History Lessons for the Middle Class

On the 70th anniversary of the Pearl Harbor attack, CBS News’ "MoneyWatch" ran “How would you feel about a 94% tax rate?” William T. Zumwalt reported: In April 1942, just a few short months after the attack, President Roosevelt proposed a 100% top rate. At a time of “grave national danger,” he argued, “no American citizen ought to have a net income, after he has paid his taxes, of more than $25,000 a year.” (That's roughly $300,000 in today's dollars). Roosevelt never got his 100% rate. However, the Revenue Act of 1942 raised top rates to 88% on incomes over $200,000. By 1944, the bottom rate had more than doubled to 23%, and the top rate reached an all-time high of 94%. There’s your progressive for you, they know exactly how much income a citizen “ought to have,” and beyond that they want only 100 percent. But WWII was a crisis, you see, and “you never want a serious crisis go to...(Read Full Article)