Under the Progressive tax system which existed from 1940 to 1982 we as a country had three Great Decades.  Thanks to the excess wealth created by our citizens, and accumulated and concentrated by our capitalists, and then collected on behalf of all of us by our government we accomplished the following:

• 1940 - 1949  We successfully fought a World War, mobilizing millions of our citizens.  We also provided supplies and arms to our allies.  Then after the war was concluded we sent our GI's to college (via the GI bill), while rebuilding Europe and Japan (via the Marshall Plan). 

• 1950 - 1959  We fought another war (the Korean War), constructed an enormous interstate highway (modeled on the German autobahn), and began to spend significant revenue on the Cold War.  The launch of Sputnik in 1957 shocked the nation and prompted an educational renewal across our land leading to the training of millions of engineers and scientists.  (Thank you General Eisenhower for defending the progressive income tax!)
• National  Interstate and Defense Highways Act of 1956

• 1960 - 1969  We developed an impressive space launching capability which allowed us to orbit the earth, and place men on the Moon.  We also continued the Cold War, and initiated two important new social programs (Medicare & Medicaid).  Unfortunately our beloved President Kennedy cut the upper tax rate down to 70%.   Taxes were raised again slightly to help pay for the Viet Nam War during the Johnson administration. 

• 1970 - 1981  The upper tax rate continued at about 70% during this decade, but economic difficulties were experienced due to the energy crisis and high inflation rates which took hold.  An economically troubled decade.  The space program was cut back and wage/price controls were instituted by President Nixon due to increasing inflation and budgetary problems.  

page last updated: 3/30/09 by ken@greatdepression2.org