Tax Cuts Didn’t Lead to Faster Growth: Average top marginal tax rate and annualized productivity growth, 1948–1979 and 1979–2007
| Year | Average top marginal tax rate | Annualized net productivity growth |
|---|---|---|
| 1948–1979 | 80.5% | 2.4% |
| 1979–2007 | 41.8% | 1.5% |
Note: Net productivity is used as the basis for the calculation of productivity growth. "Net productivity" is the growth of output of goods and services less depreciation per hour worked.
Source: EPI analysis of Bureau of Labor Statistics and Tax Policy Center data
Source: EPI analysis of unpublished Total Economy Productivity data from the Bureau of Labor Statistics and Tax Policy Center's Historical Individual Income Tax Parameters