By lowering rates on the wealthy, the Treasury had actually collected more from them. A greater portion of the income tax came from top earners than had at the beginning of the decade. In 1927, those earning over $50,000—a tremendous sum—would pay about 80 percent of the income taxes, whereas in 1920 those top earners had paid about half. “The income tax in this country,” as Mellon wrote triumphantly to one of the Treasury’s correspondents, “has become a class rather than a national tax.”
