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TreasureKY -> RE: Medicaid Withdrawal? Or all hat and no cattle? (11/7/2010 9:36:45 PM)
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quote:
ORIGINAL: slvemike4u
Are you insane...prior to such social programs as Social Security and Madicaid et al.....there certainly was a national crisis....lets put it this way,have you ever heard of bread lines....soup kitchens?
Though we still have them they are not so prevalent in our New Deal,great society reality are they ?
And why did you ignore Tims mention that taxes were higher back then?
You are so blinded by your mena spirited ideology that you would deny the most obvious of truths.
Ummm... the national crisis that prompted the New Deal was the great depression that began in October 1929. Yes, there was a proverty and unemployment crisis at that time. Unemployment rose to nearly 24% by 1932. Medicare and Medicaid, however, were not started until 1965. At that time, unemployment was around 5% and I don't believe we were having any national financial crisis at that time, though about 22% of the population was at or below the poverty level.
As far as Tim's assertion that taxes were higher back then, he didn't really specify what he meant by "back then". If he meant during the depression when there was a poverty crisis, then no... taxes were much lower. If he meant during the time Medicare and Medicaid were started, then yes, they were higher. However, his claim that taxes were "MUCH higher" is a bit of an exaggeration.
To give you an idea on how taxes have changed since the depression, I give you the following comparison based on what would be a $200,000 per year income today:
1929 The year the great depression started
$16,286 with Federal Income Tax (FIT) rate of 8%
1934 A year into the New Deal
$12,571 with FIT of 12%
1938 The end of the New Deal era
$13,708 with FIT of 12% and SS of 1% on first $3000 (averages to 12.2%)
1964 The year before Medicare and Medicaid
$29,412 with FIT of 41% and SS of 3.625 of first $6600 (averages to 42%)
1966 A year into Medicare and Medicaid
$30,303 with FIT of 39% and SS of 3.85% and Medic of .35% (averages to 40%)
1980 The year Ronald Reagan took office
$72,993 with FIT of 54% and SS of 5.08% and Medic of 1.05% (averages to 56%)
1983 After Economic Recovery Tax Act of 1981 and Tax Equity & Fiscal Responsibility Act of 1982
$93,023 with FIT of 48% and SS of 5.4% and Medic of 1.3% (averages to 51%)
2008 Latest date that reliable and easily linked data is available
$200,000 with FIT of 28% and SS of 6.2% and Medic of 1.45% (averages to 32%)
So, yeah... taxes in 1964 would have been about 42% whereas in 2008 they were only 32%. But after 1964, the tax rate rose steadily and reached a peak of 56% by 1980.
You can thank Ronnie now. [;)]
I wonder how they'll trend for 2010 and beyond...
Resources:
Inflation Calculator
Tax Rates
Social Security and Medicare Rates
OASDI Limits
Unemployment Rates
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