Speaking of Tax Rates...

While writing my last post, I got to wondering where the pre-Reagan top marginal rate of 70% kicked in, so I looked it up. In 1980, the top marginal rate of 70% (50% for wage income) kicked in at $215,400, which is equivalent to roughly $550,000 in 2008 dollars. That surprised me; I had always thought it was much higher than that.

There was also significant bracket creep due to the high inflation of the '70s; in 1965 the 70% bracket kicked in at $200,000, or over $1.3 million in 2008 dollars.

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the 70% marginal rate was for interest payments?

Or 70% on capital gains? I doubt that. The real rich people don't have taxable income. They have capital gains, now taxed at 15%.