Steve from Lambeth
Jr. Member
Posts: 748
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« on: March 16, 2024, 03:37:21 PM » |
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The top rate of federal income tax was set at 39.6% many years ago; I can't remember when exactly, but definitely by the time of Bush's 2001 tax cuts. It's been there ever since, except under the TCJA regime where it's been at 37%. There have been calls from various Democrats to pre-emptively restore the old rate and Joe Biden stated it again in his latest budget.
Why is a 39.6% top rate of tax such a totemic figure for Democrats, above - and notwithstanding - their support for TCJA expiry? What is achieved at 39.6% taxation that 39%, 39.5%, 40%, or even 39.9% would not achieve? Why was it even set there in the first place?
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