Thought I'd repost this from the Real Estate thread:
Pre-1986 Reagan
0%
11%
12%
14%
16%
18%
22%
25%
28%
33%
38%
42%
45%
49%
50%
Reagan 1986-1987
11%
15%
28%
35%
38.5%
Reagan 1988-
15%
28%
33%
28%
Bush I increase
15%
28%
31%
Clinton 1994-
15%
28%
31%
36%
39.6%
Bush II transition cuts
omitted
Bush II cuts
10%
15%
25%
28%
33%
35%
Toomey Proposal
8%
12%
20%
23%
27%
28%
Here are the annotations in addition to the table:
If you'd like to compare to Reagan, his initial plan was something like this -- not sure what year this is:
Married Filing Jointly
Marginal Tax Brackets
Tax Rate Over But Not Over
0.0% $0 $3,670
11.0% $3,670 $5,940
12.0% $5,940 $8,200
14.0% $8,200 $12,840
16.0% $12,840 $17,270
18.0% $17,270 $21,800
22.0% $21,800 $26,550
25.0% $26,550 $32,270
28.0% $32,270 $37,980
33.0% $37,980 $49,420
38.0% $49,420 $64,750
42.0% $64,750 $92,370
45.0% $92,370 $118,050
49.0% $118,050 $175,250
50.0% $175,250 -
Then there was a transitional period in 1986 and 1987 where it was 11/15/28/35/38.5, where the maximum capital gains tax rate was 28%. 38.5% is 10% higher than 35%. Clinton later used this trick too -- the 39.6% bracket is 10% higher than 36%.
Then in 1988 until the Bush I tax increases, it was 15/28/33/28. The capital gains rate was exactly the same. The 33 is because there was a 5% surcharge on earners in particular brackets to compensate for the 15% bracket and also to deal with the phaseout of personal exemptions.
Then Bush I raised it to 15/28/31. Then Clinton created two higher brackets in 1994: 1) at $115K for single and $140K for MFJ (the 36% bracket), 2) at $250K for single and MFJ (39.6%) bracket. Clinton also started separating out long-term and short-term capital gain more carefully -- I believe first it was 18 months and 5 years, and then later 12 months and 5 years. The 5 year rate was to be phased in eventually, but never happened because of the Bush tax cuts.
The Obama plan adjusted the $115/140K bracket for inflation to $200/250K at 36% and likely would have re-created the 39.6% bracket at about $400K (which is about $250K adjusted for inflation from 1994).
invite response
Thought I'd repost this from the Real Estate thread:
Here are the annotations in addition to the table:
If you'd like to compare to Reagan, his initial plan was something like this -- not sure what year this is:
Married Filing Jointly
Marginal Tax Brackets
Tax Rate Over But Not Over
0.0% $0 $3,670
11.0% $3,670 $5,940
12.0% $5,940 $8,200
14.0% $8,200 $12,840
16.0% $12,840 $17,270
18.0% $17,270 $21,800
22.0% $21,800 $26,550
25.0% $26,550 $32,270
28.0% $32,270 $37,980
33.0% $37,980 $49,420
38.0% $49,420 $64,750
42.0% $64,750 $92,370
45.0% $92,370 $118,050
49.0% $118,050 $175,250
50.0% $175,250 -
Then there was a transitional period in 1986 and 1987 where it was 11/15/28/35/38.5, where the maximum capital gains tax rate was 28%. 38.5% is 10% higher than 35%. Clinton later used this trick too -- the 39.6% bracket is 10% higher than 36%.
Then in 1988 until the Bush I tax increases, it was 15/28/33/28. The capital gains rate was exactly the same. The 33 is because there was a 5% surcharge on earners in particular brackets to compensate for the 15% bracket and also to deal with the phaseout of personal exemptions.
Then Bush I raised it to 15/28/31. Then Clinton created two higher brackets in 1994: 1) at $115K for single and $140K for MFJ (the 36% bracket), 2) at $250K for single and MFJ (39.6%) bracket. Clinton also started separating out long-term and short-term capital gain more carefully -- I believe first it was 18 months and 5 years, and then later 12 months and 5 years. The 5 year rate was to be phased in eventually, but never happened because of the Bush tax cuts.
The Obama plan adjusted the $115/140K bracket for inflation to $200/250K at 36% and likely would have re-created the 39.6% bracket at about $400K (which is about $250K adjusted for inflation from 1994).
#politics