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2007-10-12 11:13:02 · 2 answers · asked by Anonymous in Arts & Humanities History

can someone from the US please answer, instead of a bunch of wierdoes

2007-10-13 09:56:27 · update #1

2 answers

You don't say what country you are asking about. Maybe you could clarify that.

However, for a brief period (1947-48) in the UK, the Income Tax code was so wildly distorted by Socialist doctrine (it was a Socialist government at the time), that high earners could pay much more than 90% in tax.

This example is taken from the UK government website listed as the source below: -

For a person with investment income exceeding UK Pounds 5,000: -
The basic rate of income tax was 45%.
But, in addition, this high-earner was charged "surtax" at 52.5%.
And then, because it was investment income, there was a further tax charge of 50%.
So the total income tax rate for that person was 147.5%.
With an income of Pounds 5,000, the high earner would therefore owe Pounds 7,375 in taxes.

Little wonder that the rich and/or successful tried to escape Britain in those years. Not much of an incentive to work hard.

EDIT: I think I must defend myself against brainstorm's criticism. The data are from an official UK government website, not my invention. I admit that, since the website doesn't provide data on tax-exempt allowances, marginal rates, etc., my math could be wrong. But the rates are accurate.
Moreover, I answered the Q. The other answer does not.

2007-10-12 17:12:45 · answer #1 · answered by Gromm's Ghost 6 · 0 1

Yes but you had to be extremely rich to reach that tax band.
At the time Britain was economically exhausted by the war and was having to pay back huge debts to the USA.
This debt was only finally paid off in 2006.

The mathematics of Gromm are grossly distorted

2007-10-13 01:20:03 · answer #2 · answered by brainstorm 7 · 1 1

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