The 60’s began the period of Post War Tax Policy, and the start of a downward trend in the Top Marginal Tax Rate. At the start of the 1960s, the top marginal tax rate stood at 91%. This rate applied to the highest incomes and was justified as a tool for redistributive justice and National security financing. However, the Revenue Act of 1964, part of President Lyndon B. Johnson’s implementation of President John F. Kennedy’s economic agenda, reduced the top rate to 70% and started the slow decline of the Top Marginal Tax Rate.
Significance:
- Revenue Act of 1964, also known as the Tax Reduction Act, cut Marginal Tax Rates 20% across the board.
- The Top Marginal Tax Rate dropped from 91% to 70% over a 3 year period from 1963 to 1965
- Top Marginal Tax Rate of 70% for Income over $200,000 ( $2 Million in 2025)
- Lyndon Johnson was able to continue to champion and push through John F Kennedy’s Economic agenda after his assassination.
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