It started with FDR

[brgregmack]

It was more the production due to the war that pulled us out of the Great Depression and put us into the boom of the 1950’s.

Every history book I read from 2nd grade on spoke of FDR in the most glowing terms. Even now, my sons got nothing but positives from their own history books. It was a huge LIE told to us and repeated over and over ad naseum.

War production was largely forced labor of the soldiers and draft exempt production jobs. Yes unemployment went down, but the economy didn’t expand, and the tax rate was 100% for anyone above $25,000. What I’m talking about is all other industry. While FDR was still alive the market was ruled by uncertainty, very similar to what’s going on now, so nobody was investing very much. When Truman took over, businesses viewed him as more friendly and people started investing again and the economy started to grow.

Another interesting fact: In 1935 a poll was taken asking if people thought a continued FDR presidency would lead to a dictatorship. 45% said yes.

Again, if you haven’t read “New Deal or Raw Deal: How FDR’s Economic Legacy Has Damaged America,” I strongly suggest you do. Everything that I have been saying in this thread about FDR I learned by reading this book.

 

[GratefulFred]

Thanks, Mark for listing the tax rates over decades. Interesting.

Tax Rates are just one aspect. What is the difference between Total Income and Taxable Income? The difference between the two measures is exemptions, and deductions. The tax rate is applied to taxable income not total income. Often there are also tax credits which reduces one’s total tax burden.

As I understand it, fully 40% or more Americans do not pay federal income tax. The poverty rate is about 15%, not 40%. All can vote. Who, not paying any income tax, would not vote for MORE government programs?

So far, no one on this thread has talked about the accumulated federal debt. Borrow more and tax less. Borrow less and tax more. I think tax rates need to be examine in light of federal debt.

We are in debt by more than $14.2 trillion dollars. The current Administration has raised the debt by quite alot simply by choosing to spend more. Yes they also want to raise taxes. But their spending more came first which is putting us further behind.

The discussion right now is should we just raise the debt limit or should we reduce spending or some blend of the two? We ARE borrowing from our children and great grandchildren. Is that fair? Or is that selfish?

 

[brgregmack]

Thanks, Mark for listing the tax rates over decades. Interesting.

Tax Rates are just one aspect. What is the difference between Total Income and Taxable Income? The difference between the two measures is exemptions, and deductions. The tax rate is applied to taxable income not total income. Often there are also tax credits which reduces one’s total tax burden.

As I understand it, fully 40% or more Americans do not pay federal income tax. The poverty rate is about 15%, not 40%. All can vote. Who, not paying any income tax, would not vote for MORE government programs?

So far, no one on this thread has talked about the accumulated federal debt. Borrow more and tax less. Borrow less and tax more. I think tax rates need to be examine in light of federal debt.

We are in debt by more than $14.2 trillion dollars. The current Administration has raised the debt by quite alot simply by choosing to spend more. Yes they also want to raise taxes. But their spending more came first which is putting us further behind.

The discussion right now is should we just raise the debt limit or should we reduce spending or some blend of the two? We ARE borrowing from our children and great grandchildren. Is that fair? Or is that selfish?

Saying that we’re borrowing from our children and grandchildren, while true, is slightly misleading. The immediate problem is that all of this spending is deferring capital that could be put to better use, i.e. the way us private citizens choose and not special interest bureaucrats.

The bottom line is that we’re in a mess, and it’s not just one person’s fault.