Contents
Income Tax Revenues (1980s)
| Total income tax collected in the 1980s
(in billions of real dollars) | ||
|---|---|---|
| Year | Revenue (billions of real dollars) | Comments |
| 1981 | 312.5 | 5% tax rate cut this year |
| 1982 | 287.7 | 10% tax rate cut this year |
| 1983 | 275.3 | 10% tax rate cut this year |
| 1984 | 290.6 | |
| 1985 | 302.7 | |
| 1986 | 346.5 | 3% tax rate cut for top marginal rate
Capital gains rate raised from 20% to 28% this year AMT changed to ensure most upper income taxpayers pay at least 31% |
| 1987 | 325.0 | |
| 1988 | 349.0 | |
| 1989 | 354.4 | |
Note that the Reagan tax cut, phased in from late 1981 to 1983 produces an immediate increase in revenue, as opposed to the decreases portrayed by opponents. In addition, the increase in the capital gains tax more than outweighed the "revenue neutral" top marginal rate cut of 3%. And as a result, capital gains revenues decreased for the first time in over a decade.
In addition to overall revenues going up, income tax revenues went up at the Federal level, and increased at a faster rate after the tax rate cuts than before the tax rate cuts.
© 1994-2012
![[Kottmann Consulting]](/images/kottmann_consulting_script2.jpg){kind=small}
All trademarks are the property of their respective owners.
Disclaimer
Privacy Statement