Trickle-Down Taxation
The Alternative Minimum Tax was imposed in 1969 because 115 households investing in municipal bonds reportedly paid little or no federal income tax… On Jan. 1, 2013, it is set to hit 27 million more—raising an estimated $120 billion, according to the Obama 2013 budget. In 40 years, a tax on 115 households will have grown to threaten 31 million.
The personal income tax… began in 1913 with a top rate of 7% and hit only those with a taxable income of $500,000 or more. (According to the Bureau of Labor Statistics inflation calculator, that would be $11.5 million now.) Today, roughly half of American families pay the personal income tax.
More on this taxation controversy in The Wall Street Journal.
The sad part is that those who pay no tax are prone to beg for favors from government paid for by those who do pay tax. A bigger tragedy is that people yet unborn are getting saddled with debt that they will have to be paid for.
This cannot possibly be the original intent. How have we moved so far away from where we started with 7%? Obese government!
Ah for the days of the 47 1/2 percent oil depletion allowance (which allowed Texas oilmen to reduce their effective tax rate way below the 90 percent nominal federal income tax rate).