OnTheIssues Fact Checking: on Tax Reform

Bobby Jindal: FactCheck: JFK lowered top income tax rate from 91% to 65%

Jindal was referring to a 1962 speech in which JFK pledged "across-the-board, top-to-bottom cut in personal and corporate income taxes" for the purpose of stimulating the economy. So is Jindal making a fair analogy?

No, because the top marginal tax rate in 1962 was 91% and JFK proposed lowering the top rate to 65% (compared to a top rate of 37% today). In the context of much higher rates in 1962, cutting tax rates meant something very different than today--Jindal knew that context, and hence was lying about JFK's proposal. No politician of any party today would even consider RAISING tax rates to the LOWER 65% levels proposed by JFK in 1962!

Donald Trump: Fact Check: Claims falsely that Biden would raise all taxes

[OnTheIssues fact-check: Is that true? No]: Kiplinger.com analysis (9/18/20) of Biden's tax plan: He wants to raise the highest personal income rate back up to 39.6% (it was lowered to 37% by the 2017 tax reform law), cap itemized deductions for wealthier Americans, limit "like-kind exchanges" by real estate investors, and phase-out the 20% deduction for qualified business income for upper-income taxpayers. He won't raise taxes for anyone making less than $400,000, though.

Herman Cain: FactCheck: No, middle-earners pay more than 20% of taxes

The most important example is FICA, the payroll tax withholding for Social Security. Cain himself calls that tax "highly regressive" (p. 83). Employees pay for FICA at 6.2% on the first $106,800 of taxable earnings, and 0% above that earning level. That means low- and middle-earners actually pay towards FICA a HIGHER percentage of their income than do high-earners. Cain misleads readers by citing only the federal income tax totals

Joe Biden: Return top rate to 39.6% from 37%; cap itemized deductions

[OnTheIssues fact-check: Is that true? No]: Kiplinger.com analysis (9/18/20) of Biden's tax plan: He wants to raise the highest personal income rate back up to 39.6% (it was lowered to 37% by the 2017 tax reform law), cap itemized deductions for wealthier Americans, limit "like-kind exchanges" by real estate investors, and phase-out the 20% deduction for qualified business income for upper-income taxpayers. He won't raise taxes for anyone making less than $400,000, though.

John F. Kennedy: FactCheck: JFK lowered top income tax rate from 91% to 65%

Rush referred to this 1962 speech by Pres. Kennedy, pledging "across-the-board, top-to-bottom cut in personal and corporate income taxes" for the purpose of stimulating the economy.

Rush seems to have a case. But in fact, the top marginal tax rate in 1962 was 91% and JFK proposed lowering the top rate to 65% (compared to a top rate of 37% today). Similarly, the corporate tax rate in 1962 was 52% and JFK proposed lowering it to 47% (compared to a corporate rate of 15% today).

In the context of the much higher rates in 1962, cutting tax rates meant something very different than today--Rush presumably knew that context, and hence was lying about JFK's proposal. No politician of any party today would even consider RAISING tax rates to the LOWER levels proposed by JFK in 1962!

Paul Ryan: FactCheck: JFK cut rates by 20%, but from twice today's rate

RYAN: It is mathematically possible. It's been done before. It's precisely what we're proposing. It's been done a couple of times, actually. Jack Kennedy lowered tax rates, increased growth. Ronald Reagan, Republicans & Democrats have worked together on this.

THE FACTS: The top marginal tax rate in 1962 was 91% and JFK proposed lowering the top rate to 65% (compared to a top rate of 37% today). Yes, JFK did cut tax rates by more than 20%. But in the context of the much higher rates in 1962, cutting tax rates meant something very different than today--Ryan hence cannot realistically apply the lessons from JFK to today. No politician of any party today would even consider RAISING tax rates to the LOWER levels proposed by JFK in 1962!

Rush Limbaugh: FactCheck: JFK lowered top income tax rate from 91% to 65%

Rush referred to this 1962 speech by Pres. Kennedy, pledging "across-the-board, top-to-bottom cut in personal and corporate income taxes" for the purpose of stimulating the economy.

Rush seems to have a case. But in fact, the top marginal tax rate in 1962 was 91% and JFK proposed lowering the top rate to 65% (compared to a top rate of 37% today). Similarly, the corporate tax rate in 1962 was 52% and JFK proposed lowering it to 47% (compared to a corporate rate of 15% today).

In the context of the much higher rates in 1962, cutting tax rates meant something very different than today--Rush presumably knew that context, and hence was lying about JFK's proposal. No politician of any party today would even consider RAISING tax rates to the LOWER levels proposed by JFK in 1962!