The Twinkie, it turns out, was introduced way back in 1930. In our memories, however, the iconic snack will forever be identified with the 1950s, when Hostess popularized the brand by sponsoring “The Howdy Doody Show.” And the demise of Hostess has unleashed a wave of baby boomer nostalgia for a seemingly more innocent time. Needless to say, it wasn’t really innocent. ... in the 1950s incomes in the top bracket faced a marginal tax rate of 91, that’s right, 91 percent, while taxes on corporate profits were twice as large, relative to national income, as in recent years. The
Comments: Once again Krugman shows he has totally lost it. That 91 percent rate caused the rich to hide their income and avoid taxes altogether. THAT´S why the rate was decreased - and collections increased. Maroon.
This guy is a Nut Job with a short memory. First of all, we were coming out of a World War in the 50´s and I´m pretty sure most everyone was paying taxes. Spending domestically was low and we didn´t have the Welfare State we do today. Does this guy EVER utter the words "Reduce Spending"???
Progress. Maybe in his next column Nobel Prize Krugman will come out of the closet and admit what Democrats actually want: a 100% tax rate on all Republicans. Why stop at 91% Paul, when that´s soooo not compassionate enough?
If we want to go back to the 1950´s, we were also battling communists abroad and communist sympathizers at home. let´s bring all that back, too. FBI security checks, loyalty oaths, blacklisting, surveillance of communist sympathizers. I suspect Paul Krugman would be blacklisted out of his job.
1) There were tons more deductions 2) There were many more loopholes 3) When I started paying taxes, just in the early 80s, one example of many, you could deduct 100%, yes that is 100%, of your credit card interest!
When I was a kid and my dad first explained taxes to me, that would be early 60s, he said, "The government takes somewhere between a third and half your salary". This was the common rule of thumb. Self-employed usually socked away a third of their salary to cover their taxes. This was what my mom did, who had her own small accounting business, from 1963 to 1973.
Paul, you ignorant slob. To get to the booming 50s we would have to spend trillions just like the US did in the 40s. Remember we bombed all our competition into the stone ages in the forties? There was no competition so capital and labor was concentrated in the US. So of course our economy boomed. Today, much as the socialist want to believe, if we raise tax rates and allow unlimited union participations, there wouldn´t be a US. Cause all the money and jobs would be in countries that like rich folks that supply jobs.
The Almighty Union killed the Twinkie as surely as it killed Chevrolet, GM, Chrysler, Jeep, etc., etc. (Ford didn´t drink the Kool-Aid, but got blamed for it anyway.) Hate Krugman nearly as much as I hate what the unions have become.
Yes, some of the ´rich´ are greedy and obnoxious. Most highly execs, though, are paid on productivity. If they can bring the company big bucks, then they will be paid big bucks.
I believe the real issue is...why are there so many poor? What life decisions did they make, or not make, to put them in the positions they are in? There is still a lot of opportunity in this country to be financially successful. They are a drag on our economy. Why? They are the ones we should be concentrating on.
Krugman, a Princeton, NJ resident(well, his wealthy wife owns the home there) is a fool. There are many many large homes in Princeton that were put up by the accountants who hid that wealth during the %91 rates era.
The higher tax rates are still being paid. Now they are imposed in the form of EPA, OSHA, and all the other government agencies stacks of rules, regulations and laws. Back in the ´50s, business was easier and less expensive to start and operate. People were smarter too: They didn´t have to be told that coffee could burn them, etc.
All those government agencies that write the laws, rules and regulations have been a boon to lawyers. The government fines companies and then blows the money in other areas. The Gulf oil spill money from BP is going to the government coffers- not to the people hurt by the spill.
Let´s get this out of the way first... Krugman is lying.
I´ve been seeing this admiration for the 91% top marginal rate and smaller disparity of earnings in the 1950s, often combined with the simpleton liberal cackling about how the economy was booming despite that 91% top tax rate that kicked in pretty quickly. So I took a look into it and here´s what they aren´t telling you....
First, executives and other white collar workers weren´t living a life of austerity. Companies and executives evaded the top margial tax rates through expense accounts and company benefits that includes mansions, servants, vacation homes, and yacts. A 1958 Yale Law Journal article titled "Expense Accounts for Executives" by V. Henry Rothschild and Rudolf Sobernheim conservativele estimated expense account spending at $5 billion, evading $1-2 billion in taxes, allowing executives to live well beyond their salary means. What they fail to realize is that those loopholes were closed as rates went down.
Second, the economy of the 1950s boomed because the US was running a massive trade surplus, thanks to much of Europe and Japan having been bombed flat by WW2.
So if they want to replicate the miracle of the 1950s, all we need to do is put all of those loopholes back, raise the top rate back to 91%, and then bomb Europe and Asia flat. Think Obama and the rest of the left will go for that plan?
I can´t quit thinking about the scene in Paternity when Burt Reynolds´ character (newly transformed into a nutrition Nazi) sets a Twinkie on the rail of (I think the Staten Isle Ferry) and tells a pregnant Beverly D´Angelo:
"See this? There are so many preservatives in this thing, I could leave this here & it will still be standing after this Ferry has been reduced to rust. Don´t eat it." (loose paraphrasing)
She rolls her eyes. Hmmmm . . . I WONDER if that´s why he never got anymore work? (pun intended)
On a cold October morning, just after the federal government shutdown came to an end, Jenner Barrington-Ward headed into court in Boston to declare bankruptcy. (Snip) It has been a painful slide. A five-year spell of unemployment has slowly scrubbed away nearly every vestige of Ms. Barrington-Ward's middle-class life. She is a 53-year-old college graduate who worked steadily for three decades. She is now broke and homeless. Ms. Barrington-Ward describes it as "my journey through hell." She was laid off from an administrative position at the Massachusetts Institute of Technology in 2008;
Francis Bacon´s painting "Three Studies of Lucian Freud" became the most expensive work of art ever sold when it fetched $142.4 million in one of the biggest auctions in history at which Christie´s sold more than $691 million worth of art. Bacon´s 1969 triptych, never before offered at auction and which carried a pre-sale estimate of about $85 million, easily eclipsed the $119.9 million price of Edvard Munch´s "The Scream," achieved in May last year at Sotheby´s.
The old adage "a picture is worth a thousand words" was on full display during HHS Secretary Kathleen Sebelius´s testimony on Capitol Hill Wednesday. The television showed a split screen. On one side was the Secretary proclaiming that Healthcare.gov has never crashed. On the other side was an image of the crashed Obamacare website, which was down for the duration of her three hour testimony before the House Energy and Commerce Committee. The split screen picture said it all: The Obama administration says one thing; the facts say the opposite. There's no more striking example of this than
A data center critical for allowing uninsured Americans to buy health coverage under President Barack Obama´s healthcare law went down on Sunday, the U.S. government said, in the latest problem for the "Obamacare´´ rollout. Verizon´s Terremark operates the data center behind a federal system for determining eligibility for government subsidies to buy insurance nationwide and hosts HealthCare.gov, the website that makes insurance available in 36 of the 50 states. The data center experienced a failure on Sunday that led it to lose network connectivity, Health and Human Services Department spokeswoman Joanne Peters said.
The Left’s obsession with Charles and David Koch continues unabated. Today’s exhibit: this New York Times article on a press conference by California campaign finance officials on a fine that they levied against an Arizona group called the Center to Protect Patient Rights. ...So the story apparently is all about the Kochs. Does this mean that the Koch brothers ... contributed some of the $15 million that was involved in the incident that gave rise to the fine? Um, no.
The international telecommunications company Verizon has been tasked with helping the government fix the federal health exchange, USA TODAY has learned. An informed source in the telecommunications industry said Verizon´s Enterprise Solutions division has been asked by the Department of Health and Human Services to improve the performance of the HealthCare.gov site, which is a key component of the Affordable Care Act. The source spoke on condition of anonymity because the announcement had not been made official. HHS office said Sunday the department would reach outside its
The Chinese government has warned the U.S. that the government shutdown and prospect of Washington´s first ever default were threatening the value of its U.S. investments. In its first official reaction to the U.S. political stalemate over the budget and looming debt ceiling deadline later this month, Beijing said that "the clock is ticking" and urged politicians in Washington to "ensure the safety of the Chinese investments".
President Obama will cast growing income inequality and a decline in economic mobility as a “fundamental threat to the American dream” during a speech Wednesday in Washington. The speech will serve as an early preview for next year’s State of the Union address, according to a White House official, who said Obama would focus much of his energy over the next three years on the issue. “The decisions we make over the next few years will determine whether or not our children will grow up in an America where, if you work hard, you can get ahead,” the official said.
Good stuff from Jonathan Turley at today’s House hearing on executive power, although I regret that I couldn’t find a more user-friendly format for you to watch. There’s no compilation clip; you’ll have to make do with the C-SPAN embed by fast-forwarding to the time cues I give you and being patient while the vid buffers (and buffers, and buffers).(Snip)That brings us to point two: Even if Congress can’t stop Obama, the courts can. The problem there, though, says Turley, is that O and the DOJ have argued successfully in many cases that no one has standing to sue him
During a presentation at the White House in which President Barack Obama touted the benefits of the Affordable Care Act, the president declared that his signature health care reform law was not going to be repealed. This assertion led his administration members, his staff, and audience members to rise from their seats and give the president a standing ovation. Obama said that ACA opponents’ alternative to the health care reform law is to champion repeal and going back to the health care delivery system status quo ante. He specifically cited Sen. Mitch McConnell (R-KY) who he said was asked directly for
A woman has revealed how difficult it is to eat healthily and stay full when living off an average food stamp budget. Melinda Moulton, from Huntington, Vermont, was one of 200 people to take part in the 3Squares Challenge, which saw her living for a week on just $36 worth of food, or around $1.71 a meal. Opting to try and eat as healthily as possible, Ms Moulton resorted to cheap foods like yogurt for breakfast, two handfuls of peanuts for lunch and lentil stew for dinner, all of which left her unsatisfied.´I don´t know how people do it,´ said
[Video] President Obama on Wednesday declared that addressing income inequality would be the focus of “all” of the White House’s efforts “for the rest of my presidency.” In a sweeping address that touched on raising the minimum wage, investing in infrastructure and ending tax breaks for the wealthy, Obama warned that the American economy has become “profoundly unequal,” declaring economic mobility the “challenge of our time.” “The combined trends of increasing inequality and decreasing mobility pose a fundamental threat to the American dream, our way of life, and what we stand for around the globe,” he said in an hour-long
Just over two weeks ago, MSNBC host Martin Bashir delivered a harsh piece of commentary that culminated in the suggestion that someone should “s-h-i-t” in former Alaska Governor Sarah Palin‘s (R-AK) mouth. Bashir offered an abject apology on his next broadcast, but a chorus of critics continued to demand action against the host. After a reported “vacation” for the host earlier this week, Bashir announced, Wednesday afternoon, that MSNBC and Martin Bashir are parting ways. Here’s the statement from Martin Bashir, via email: After making an on-air apology, I asked for permission to take some additional time out around the Thanksgiving holiday. Upon
Nineteen people stood behind President Obama on stage in the Executive Office Building Tuesday as the president kicked off a new campaign to promote Obamacare. One of those people, a young Florida woman named Monica Weeks, introduced Obama after telling the story of being struck with Crohn´s Disease at age 19 and receiving expensive treatments for several years that were covered by her parents´ health care plan — because Obamacare allowed her to remain on that plan until age 26. Now, Weeks said, she has coverage through a job. "The Affordable Care Act gives young adults who are just starting