Coming Soon - The Return of 90% Tax Rates

Back in the 50's the highest tax bracket paid a 91% tax rate. JFK reduced it to 70% and tax revenues to the government soared. Reagan slashed it to 28% and again revenues to the federal treasury soared and the economy thrived.

Now, for those who have the misfortune of receiving funds in a politically incorrect way, the 50's have returned:

WASHINGTON (AP) -- The House is scheduled to vote today on a bill that would levy a 90 percent tax on bonuses paid to employees with family incomes above $250,000 at companies that have received at least $5 billion in government bailout money.

"We figured that the local and state governments would take care of the other 10 percent," said Rep. Charles Rangel of New York, chairman of the tax-writing House Ways and Means Committee.

Rangel said the bill would apply to mortgage giants Fannie Mae and Freddie Mac, among others, while excluding community banks and other smaller companies that have received less bailout money.

If you think this movement toward punitive taxes will be limited to those receiving bonuses in bailout companies, think again. This is the first move toward punitive taxes for anyone with a family income over $250,000 regardless of source. There are already plans afoot to increase the top tax rate to 39.6% (42% when you add in the loss of deductions).

It won't be much of a leap for Congress and Obama to decided that you really don't need to keep any of that money.