Asked by Diwas Bhatt? on Jul 17, 2024
Verified
In 1980 the top marginal tax rate was
A) 28 percent.
B) 33 percent.
C) 50 percent.
D) 70 percent.
E) 90 percent.
Top Marginal Tax Rate
The highest tax rate applied to the last dollar of taxable income, affecting the highest income earners within a progressive tax system.
1980
A year marked by significant global events including the eruption of Mount St. Helens and the election of Ronald Reagan as the President of the United States.
- Understand the architecture and varieties of taxes in the United States, encompassing Social Security, excise, income, and sales taxes.
- Examine the impact of certain tax regulations and changes on tax income.
Verified Answer
HH
H?c hành - Gi?i tríJul 19, 2024
Final Answer :
D
Explanation :
In 1980, the top marginal tax rate was 70 percent, which means that the highest earners were taxed 70 cents on the dollar for their top bracket of income. This was part of a series of high tax rates in the post-World War II era that aimed to redistribute wealth and reduce economic inequality. However, beginning in the 1980s, there was a shift towards lower tax rates and deregulation, culminating in the tax cuts of the Trump administration in 2017.
Learning Objectives
- Understand the architecture and varieties of taxes in the United States, encompassing Social Security, excise, income, and sales taxes.
- Examine the impact of certain tax regulations and changes on tax income.