When Exactly Did We Become a Capitalist Nation Again?

[Mr. Peabody]

Ok, so the le is somewhat facetious, but I was watching Mad Men today (which is set in the 1960's) and one of the characters on the show was talking about there no point in making more money because the top earners were paying a 90%+ marginal tax rate. He's correct, until 1963, the top marginal tax rate was 91%.

My question is, were we a socialist nation at that point in our nation's history? I ask because whenever the issue of raising taxes comes up, certain segments of the population say that raising taxes = socialism. For example, when Obama proposed raising the top marginal tax rate from 35% to 39.5%, there were those on the right who labeled him a socialist. So, my question is - if the top marginal tax rate being raised to 39.5% makes this a socialist nation, then we were a socialist nation for 80 out of the last 90 years or so, correct? Looking at marginal tax rates throughout our nation's history, since 1917, we've only been below 35% (the current rate) and 39.5% (Obama's rate) for a handful of years.

So were we only a capitalist nation from 1988-1992, when the rates were below 35%? Was Ronald Reagan a socialist president with tax rates above 38% for almost his entire presidency?

I just don't know what the magic number is here and am curious.

[Ignignokt]

Ok, so the le is somewhat facetious, but I was watching Mad Men today (which is set in the 1960's) and one of the characters on the show was talking about there no point in making more money because the top earners were paying a 90%+ marginal tax rate. He's correct, until 1963, the top marginal tax rate was 91%.

My question is, were we a socialist nation at that point in our nation's history? I ask because whenever the issue of raising taxes comes up, certain segments of the population say that raising taxes = socialism. For example, when Obama proposed raising the top marginal tax rate from 35% to 39.5%, there were those on the right who labeled him a socialist. So, my question is - if the top marginal tax rate being raised to 39.5% makes this a socialist nation, then we were a socialist nation for 80 out of the last 90 years or so, correct? Looking at marginal tax rates throughout our nation's history, since 1917, we've only been below 35% (the current rate) and 39.5% (Obama's rate) for a handful of years.

So were we only a capitalist nation from 1988-1992, when the rates were below 35%? Was Ronald Reagan a socialist president with tax rates above 38% for almost his entire presidency?

I just don't know what the magic number is here and am curious.

Oh ! like the NEw deal happened or something!

[Mr. Peabody]

Oh ! like the NEw deal happened or something!

Tax rates have fluctuated since The New Deal. It's not as if they skyrocketed at that time and have been coming down ever since.

[boutons_deux]

"certain segments of the population say that raising taxes = socialism."

ignore them, they're stupid s.

[Wild Cobra]

The tax rate has little to do with if we are socialists or not, it's how the money is spent.

[Mr. Peabody]

The tax rate has little to do with if we are socialists or not, it's how the money is spent.

Well, what makes certain government spending capitalistic versus socialistic? Is it the beneficiary of the money that matters?

[Wild Cobra]

Well, what makes certain government spending capitalistic versus socialistic? Is it the beneficiary of the money that matters?

Let's just start with is it is outlined by the preamble or not.

[Wild Cobra]

In opposition to your question, I would say we started becoming a socialist nation when the 16th amendment was ratified.

Before the 16th amendment:

To raise revenue to fund the Civil War, the income tax was introduced in the United States with the Revenue Act of 1861. It was a flat tax of 3% on annual income above $800. The following year, this was replaced with a graduated tax of 3-5% on income above $600 in the Revenue Act of 1862, which specified a termination of income taxation in 1866. The Socialist Labor Party advocated a graduated income tax in 1887. The Populist Party "demanded a graduated income tax" in its 1892 platform. The Democratic Party, led by William Jennings Bryan, advocated the income tax law passed in 1894, and proposed an income tax in its 1908 platform.

Not long after tax rates kept rising, we had the great depression.

[spursncowboys]

When taxes go from being used to pay for govt. to evening out the playing field or redistributing wealth- it is socialism since that is a socialist idea. The question should be when did we stop being a capitalist nation.

[DarrinS]

It cracks me up when liberals think they are sticking it to the rich by raising their taxes, when, in reality, the rich will just either pass on the cost to consumers or lay off employees.

[Wild Cobra]

I'm in agreement with both the last two posts.

[rjv]

When taxes go from being used to pay for govt. to evening out the playing field or redistributing wealth- it is socialism since that is a socialist idea. The question should be when did we stop being a capitalist nation.

even out the playing field for who? the banks, insurance companies, drug companies? beacause this evening out of the field you have mentioned has been happening with every president since reagain.

[Nbadan]

It's the ole' argument of the concentration of wealth versus redistribution...If your a billionaire it's easy to make money in America, so money tends to 'concentrate' into fewer and fewer hands, but that's how deep recessions happen, such as the one we are in today because the money that would otherwise be circulating is today working against us, speculating on energy, and on Wall Street...

[boutons_deux]

Socialism is a red-herring.

It's the Repugs, corps, capitalists exploiting the ignorance of the red-state dumb s to rouse the loser rabble into cementing the corps and capitalists even stronger into the position of wealth-sucking power.

Level of taxation has nothing to do with socialism.

One easy way to reduce the deficit problem is to tax capital gains and inheritances at the same rate as earned income.

The lower tax rate on capital gains is one of the key ways capitalists suck wealth away from and out of everybody else.

The tax rate does indicate that America is not socialist, when earned income is taxed higher than capital gains, and tax breaks and subsidies from the govt go to corporations at much higher rate than to wage earners.

Capitalists (bankers, private funds, shareholders) control the economy AND control the govt, so by the textbook definition of socialism (for those of you who get your primary education from Fox Repug Network), America is not socialist.

For you of short attention span and of long ignorance, here's a one-pager that clarifies how unsocialist America is (for the lower 95%) and how much freedom and control employees have in, eg Germany.

http://blogs.alternet.org/speakeasy/...-s-word/print/