This is a Sunday feature looking back at selected articles from the early days of this blog before readership had ramped up. Enjoy.
I was going through some old papers belonging to family again and found the following in the 1963 Canadian Federal Tax Guide:
For the portion of income over $400,000, the tax rate is 80%. Add the Quebec provincial rate of 13.2% to this, and you get total tax rate of 93.2%! According to Truth and Politics, the corresponding US tax rate in 1963 on income over $400,000 was either 87% or 91% depending on what their footnote 7 means.
This really surprised me. Sure, $400,000 was an enormous income in 1963, but to take away almost all income above that level seems incredible. I used to think that income tax rates had risen steadily over the past century, but apparently, there have been some big bumps along the way.