Taxation and What We Really Pay

Word Count: 1017 · Reading Time: 5 minutes


I was having a conversation with a friend about tax rates and the idea that we should go back to higher rates (say, what was done in the 1940’s and 1950’s). I’ve seen a lot of confusion about what this means and what kind of effect it has on the amount of money you keep at the end of the day. So, I wrote up this table showing the tax rates from 1944 (paid in 1945) and then converted 1944 dollars to 2020 dollars to build a comparison table.