Follow the Money: Taxes Paid by Corporations & Humans
The bottom line of these numbers? Americans are paying more taxes, and corporations are paying less. Way less. And their profits? Well, they are out of control. The Democrats have tried to fix this, but without control of the House and Senate, they can’t get the legislation passed. However, the tax cuts enacted by DT and his Republican-controlled Senate run out… wait for it… in 2025.
This is our moment to have corporations pay their fair share.
It is clear that the economy is going to be front and center in this election.
Simple, clear messages to those who say they are better off economically under a MAGA administration versus a Democratic administration are misinformed. Shame on us for allowing the media to do that.
Let’s look at the tax rates over the years for corporations.
Keeping in mind that the Republicans have always said that trickle-down economics will give humans more cash than tax breaks to them. Give the corporations the tax breaks, and voila, we the people will have more money.
Tax Rates by Corporations
Take Rates for Americans
Ok, let’s look at We the People and our tax rates and average pay out to the government.
To provide the tax rate for the middle class for each decade since 1950 and the average amount paid in taxes by the average American, we'll look at two sets of data:
Tax Rate for the Middle Class: This refers to the marginal tax rate for the middle-income bracket. The definition of "middle class" can vary, but for simplicity, we’ll focus on the median income tax rate.
Average Taxes Paid by Americans: This includes all federal taxes (income, payroll, etc.), averaged across all income groups.
Middle-Class Tax Rate by Decade
1950s: Marginal Tax Rate: 22-26% (depending on exact income levels)
1960s: Marginal Tax Rate: 22-25% (similar to the 1950s, with slight variations in bracket)
1970s: Marginal Tax Rate: 22-24% (adjusted for inflation, but the rates remained fairly stable)
1980s: Marginal Tax Rate: 14-28% (1981 tax cuts significantly lowered rates, followed by the Tax Reform Act of 1986)
1990s: Marginal Tax Rate: 15-28% (increase in top rates but relatively stable for the middle class)
2000s: Marginal Tax Rate: 15-28% (the Bush tax cuts in 2001 and 2003 lowered rates, including for the middle class)
2010s: Marginal Tax Rate: 15-25% (remained similar until the Tax Cuts and Jobs Act of 2017)
2020s: Marginal Tax Rate**: 12-22% (as of the 2020 tax brackets under the Tax Cuts and Jobs Act)
But here is the dollars and cents:
Average Taxes Paid by Americans by Decade
1950s: Average Taxes Paid: ~$200-$400 (adjusted for inflation, about $2,000-$4,000 in today's dollars)
1960s: Average Taxes Paid: ~$400-$600 (adjusted for inflation, about $3,000-$5,000 in today's dollars)
1970s: Average Taxes Paid: ~$600-$1,000 (adjusted for inflation, about $4,000-$7,000 in today's dollars)
1980s: Average Taxes Paid: ~$1,000-$2,000 (adjusted for inflation, about $3,000-$5,000 in today's dollars)
1990s: Average Taxes Paid: ~$2,000-$3,000 (adjusted for inflation, about $4,000-$6,000 in today's dollars)
2000s: Average Taxes Paid: ~$3,000-$5,000 (adjusted for inflation, about $5,000-$8,000 in today's dollars)
2010s: Average Taxes Paid: ~$5,000-$7,000 (adjusted for inflation, about $6,000-$9,000 in today's dollars)
2020s: Average Taxes Paid: ~$7,000-$9,000 (this varies based on income but is adjusted for inflation)
We can do this. An informed electorate will make decisions in their best interests.
Notes:
- The tax rates reflect the marginal rates that applied to middle-income earners, which can fluctuate depending on specific income levels within each decade.
- The average taxes paid are rough estimates and vary based on numerous factors, including changes in tax law, inflation, and economic conditions. They combine both federal income taxes and payroll taxes.
These numbers provide a general sense of the trends over time rather than exact figures. The actual tax burden can vary widely depending on specific circumstances, deductions, and other individual factors.