For the top 1% of income earners, the effective tax rate—which accounts for actual taxes paid after deductions and exemptions—was approximately 42% during the 1950s.

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This rate encompasses all forms of taxation, including federal, state, and local taxes.

It's important to note that while the top marginal tax rate was significantly high, the effective tax rate for the majority of top earners was considerably lower due to the progressive nature of the tax system and the availability of various deductions and exemptions.

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The top 1% of U.S. taxpayers have an average effective federal income tax rate of 26.1%.

taxfoundation.org

This rate is significantly lower than the approximately 42% effective tax rate faced by the top 1% in 1955. The decrease over the decades can be attributed to changes in tax policy, including reductions in top marginal tax rates and the introduction of various deductions and credits.

Additionally, the top 1% of taxpayers contribute a substantial portion of federal income taxes, paying 40.4% of the total federal individual income taxes.

The increase in recent decades of the share contributed by high-income individuals is attributed to rising income inequality, with top earners experiencing significant income growth over the past few decades.

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Effective Tax Rate for the Top 0.1% (1955)

• Estimates suggest that the top 0.1% paid around 50–60% of their income in federal income taxes. Today the top 0.1% paid an effective federal tax rate of around 30–35%.

Determining the exact share of federal income taxes paid by the top 1% in 1955 is challenging due to limited publicly available data from that specific year.