NEW YORK TIMES: … But in fact, most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago. According to an analysis by The New York Times, the combination of all income taxes, sales taxes and property taxes took a smaller share of their income than it took from households with the same inflation-adjusted income in 1980.
Households earning more than $200,000 benefited from the largest percentage declines in total taxation as a share of income. Middle-income households benefited, too. More than 85 percent of households with earnings above $25,000 paid less in total taxes than comparable households in 1980.
Lower-income households, however, saved little or nothing. Many pay no federal income taxes, but they do pay a range of other levies, like federal payroll taxes, state sales taxes and local property taxes. Only about half of taxpaying households with incomes below $25,000 paid less in 2010… (more)
Another bogus NY Times assertion. It is a favorite game of government to inflate the dollar thus pushing people into higher tax brackets minus an increase in buying power. What cost a dollar in 1980 cost $2.80 in 2012. Those earning $200,000 in 2012 is equivalent to about $71,500 in 1980 dollars. In other words, taxing the rich for fairness should start at $561,500, not $200,000. Nice try NY Times. Gotcha!
EDITOR: Good point! We do have bracket creep, which is why some feel that a 39% marginal rate should only apply for incomes above $500,000.
Interestingly, in 1980 the top tax rate was 70%, twice what it is today.
Yes it was and the investment deductions were far more liberal. For example, investment losses were not limited to $3000 annually, to name one.