Riedl's conclusion: "The 110th Congress will be serving when the first of 77 million baby boomers receive their first Social Security checks in 2008. The subsequent avalanche of Social Security, Medicare, and Medicaid costs for these baby boomers will be the greatest economic challenge of this era.
History of Federal Income Bottom and Top Bracket Rates
You can find out marginal federal income tax rates back to the year 2000 (Clinton, pre-Bush rates)
by going to Moneychimp: Federal Tax Brackets
In 2000, for a married couple filing jointly, these were the rates;
15% 0 and $26,250:
28% $26,250 and $63,550:
31% $63,550 and $132,600:
36% $132,600 and $288,350:
Current marginal rates with the Bush tax cut in place are as follows, for a married couple filing jointly:
- 10% on taxable income from $0 to $17,400, plus
- 15% on taxable income over $17,400 to $70,700, plus
- 25% on taxable income over $70,700 to $142,700, plus
- 28% on taxable income over $142,700 to $217,450, plus
- 33% on taxable income over $217,450 to $388,350, plus
- 35% on taxable income over $388,350.
The graph is interesting, but those super high marginal rates after World War II were also connected to a very different scheme of deductions, including an interest deduction for all interest (not just mortgage) and no alternative minimum tax. What would be very interesting would be a graph showing effective federal income tax rates back to the thirties. I cannot find that data, and I'm not sure it exists. For effective rates back to 1979, see the previous blog.