How will the #GreenNewDeal/‘Soak the Rich’ tax policies affect the poorest Americans?

via @OccupyWisdom :

Let’s see how the New Deal / ‘Soak the Rich’ tax policy of the 1930-1940s affected the poorest Americans:

Baseline – 1929

Poorest paid 1.5% on 0 – $4,000 (median income $1,400 p/y).

2/

1932 Depression/New Deal

FDR raises income taxes (basically tripled) on poorest Americans from 1.5% to 4%.

1940

Taxes on poorest raised to 10% on first $2,000 & 13% on 2nd $2,000

Poor Americans now pay 11.5%, so about a 10x increase on the poorest in 11 years.

3/

1942

Taxes on poorest raised to 19% on 1st $2,000 & 22% on next $2,000.

Poor Americans now pay 21%, almost a 20x increase in 13 years.

1944

Taxes on poorest raised to 23% on 1st $2,000 & 25% 2nd $2,000.

Poor Americans now pay 24%, about a 20x increase in 15 years.

 

4/ The best part?

Due to monetary inflation, the median income doubled from 1929-1944. So inflation and taxes utterly punished the poor and middle class.

Learn from history before you vote to soak the rich, you’ll soak yourself.

 

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