How Tax Rates Have Benefited the Rich

Anyone wanting to know how tax rates have been adjusted to benefit the rich over the years since World War II should visit the Tax Foundation website at http://www.taxfoundation.org/taxdata/show/151.html.  This particular link takes you to a page containing the official IRS tax tables from 1913 to 2011.  The tables include what the tax rates would be adjusted for inflation from the year they applied to the present.  This enables you to see what the tax rates would be for people today if they were taxed at the same rate they were in any given year.  Below is a short table showing the tax rates for married couples filing jointly for 5 separate income levels taxed at 1961 tax rates and 2011 tax rates.



Taxable Income      Marginal      Marginal           Benefit to Taxpayer
Adjusted for            Tax Rate       Tax Rate
Inflation                     1962            2011

$     10,000                 20%             15%        5% of each $1,000 =   $50.
$     50,000                 22%             15%        5% of each $1,000 =   $50.
$   100,000                 30%             25%        5% of each $1,000 =   $50.
$   500,000                 65%             35%      30% of each $1,000 =  $300.
$1,000,000                 78%+           35%       43% of each $1,000 = $430.

Bear in mind, these tables do not reflect the changes in long term capital gains taxes which are presently limited to 15% and primarily benefit the wealthy who can afford investments.