A Balanced Perspective Towards Taxes

Updated: Oct 15, 2020


Note: None of this post constitutes tax advice or advice about filing taxes. This post is for educational purposes only. If you require tax advice, please contact an appropriate tax professional in your state.

Some people hate taxes - no matter what:

During the early years of the Obama Presidency, there arose a group of people in strong opposition towards his policies and objectives. They called themselves "The TEA Party". TEA was to stand for "Taxed Enough Already". And while taxes weren't the only aspect to this group's agenda, it was certainly in the forefront.

Ayn Rand wrote a large novel titled Atlas Shrugged. This book, written in 1957, despised taxes. One of the "strikers" even swore to recapture all the taxes that one of the lead characters, Hank Rearden, ever paid.

Let's do a real comparison:

Well, let's compare a few things. In 1957, the top Federal Tax rate for income above $400,000 a year when married filing jointly... was 91%!

https://www.tax-brackets.org/federaltaxtable/1957

Now, let's do an approximate inflation adjustment to that figure: $400,000 x 3% over 60 years = $2,356,641 dollars! Yes, this was certainly a cost of doing business in America back then - designed to either "punish" those for doing extremely well, or to ensure that "the rich pay their fair share", the effect would be the same. (Did you also see all the various tax brackets leading up to that amount? And no, I don't know about all the different tax breaks and deductions as the entire tax code was redone in 1986.)