Final answer:
When the top marginal tax rates were lowered in the 1980s, the income tax revenue collected from the top 1 percent of all income earners may not have increased significantly or may have even decreased. This is because lowering the top marginal tax rates allows high-income earners to keep more of their income, reducing the amount of tax revenue collected from them.
Step-by-step explanation:
When the top marginal tax rates were lowered substantially during the 1980s, the inflation-adjusted income tax revenue collected from the top 1 percent of all income earners
Because of the many complex provisions in the rest of the tax code, it is difficult to determine exactly the taxes an individual owes the government based on these numbers, but the numbers illustrate the basic theme that tax rates rise as the marginal dollar of income rises. Until the late 1970s, if nominal wages increased along with inflation, people were moved into higher tax brackets and owed a higher proportion of their income in taxes, even though their real
As a result of the tax cuts in the 1980s, the income tax revenue collected from the top 1 percent of all income earners may not have increased significantly or may have even decreased. This is because lowering the top marginal tax rates allows high-income earners to keep more of their income, reducing the amount of tax revenue collected from them. However, it is important to note that other factors, such as changes in the economy and individual behavior, can also influence tax revenue.