[net.politics] Taxes and Income: Reagan's counterrevolution

orb@whuxl.UUCP (SEVENER) (03/25/86)

Earlier I promised to show the effects of Reagan's policies
on actual taxes of Americans in different income groups.
Here are some facts to ponder:
(From Thomas Edsall's "The New Politics of Inequality",p. 205)
 
Income           Tax Increases from   Tax reduction      Net gain(+)
Group            Social Security      from 1981-82       or Loss(-)
                 and inflation        tax bills
------           ------------------   -------------      -----------
< $10,000             $  153           $    58           $   -95
$10-20,000               573               387              -186
$20-30,000             1,020               882              -138
$30-40,000             1,587             1,465              -122
$40-50,000             2,346             2,210              -136
$50-75,000             3,407             3,305              -102
$75-100,000            4,855             5,258              +403
$100-200,000           5,979             8,248            +2,269
Above 200,000          7,579            24,982           +17,403
 
In other words, unless you were making over $75,000, any tax
reductions from the 1981 tax cuts were wiped out by inflation
and regressive Social Security tax increases.  As one enters
the truly wealthy income group then taxes were *enormously*
decreased.  I would expect that the great preponderance of people
on the net are in the middle income groups which actually saw
their taxes increased under Reagan.

How the middle class was bewitched into thinking it was
benefitting substantially from Reagan's tax cuts for the rich
is one of the marvels of modern politics.
 
           tim sevener   whuxn!orb