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...Kennedy tax cut of 1964-1965, which trimmed both personal and corporate rates, had similar results. Those earning below $10,000 paid a total of 15 per cent less. Tax-payers earning above this paid a greater total amount of taxes at the lower rates. Once again, a tax cut similar to the one proposed by Reagan's redistributed the income-tax burden in a way that benefitted the poor. What's more, the government increased its total tax revenues 31 per cent in four years...

Author: By David Rozzell, | Title: In Defense of the 'Unfair' Tax Cut | 4/23/1981 | See Source »

...taxes paid by the middle class remained the same, and the tax bill of upper-income citizens actually increased, in spite of the lower rates. The conference's statistics show that from 1921 to 1925, the total income tax paid in the $0-$5000 class dropped by 85 per cent: in the $5000-$10,000 class by 57 per cent: in the $10,000 to $15,000 class by 57 per cent: in the $15,000 to $20,000 class by 39 per cent. Those with incomes ranging from $20,000 to $50,000 paid virtually the same taxes...

Author: By David Rozzell, | Title: In Defense of the 'Unfair' Tax Cut | 4/23/1981 | See Source »

...result was a redistribution of the income-tax burden from the poor to the rich--a fact that directly contradicts the dire predictions of Reagan's critics. By 1925, the 44 per cent of the taxpayers at the lowest end of the scale were actually removed from the rolls through a personal exemption. From 1921 to 1925, the share of the tax burden paid by those earning less than $10,000 fell from 22 to 4 per cent. In contrast, the share of the taxes paid by the over $100,000 class rose from 28 to 49 per cent...

Author: By David Rozzell, | Title: In Defense of the 'Unfair' Tax Cut | 4/23/1981 | See Source »

Total government revenues increased every year in which the rates were cut. (This excludes 1923, for which a retroactive 25 per cent was authorized, and revenues declined 23 per cent.) Revenues in 1921 amounted to $719 million--by 1928, tax revenues stood at $1.16 billion. Moreover, since prices actually were declining, the real increases were somewhat greater. somewhat greater...

Author: By David Rozzell, | Title: In Defense of the 'Unfair' Tax Cut | 4/23/1981 | See Source »

...third, more recent experience with tax cutting was the Steiger Amendment. Passed over Jimmy Carter's objections in 1978, it lowered the capital gains tax from 49 to 28 per cent. Opponents of the amendment projected a 30-per-cent revenue loss in 1979. The actual result: a 20 per cent increase in tax revenues at the lower rate...

Author: By David Rozzell, | Title: In Defense of the 'Unfair' Tax Cut | 4/23/1981 | See Source »

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