Between 1986 and 2010, the top marginal personal income tax rate was 40 percent or less compared to 70 percent or more prior to 1981. Compared to the earlier time period, in recent years the share of personal income taxes paid by high income taxpayers

Question

Between 1986 and 2010, the top marginal personal income tax rate was 40 percent or less compared to 70 percent or more prior to 1981.  Compared to the earlier time period, in recent years the share of personal income taxes paid by high income taxpayers

Quizplus · Accepted Answer

The decrease in the top marginal tax rate did not result in a decrease in the share of personal income taxes paid by high income taxpayers. In fact, the share has been higher in recent years compared to the time period when the top marginal tax rate was 70 percent or more. This is because although the tax rate decreased, high income taxpayers also saw significant increases in their income during this time period.

Between 1986 and 2010, the Top Marginal Personal Income Tax