kennedy would begin to push back the tax rate inherited from world war ii. by then the top tax rate was 70%. big changes would follow in 1981 when ronald ray gra reagan becae president. the top tax rate fell to 28% for the very wealthiest americans. in 1986 a big push to clean up the tax system was enacted to eliminate loopholes and favoritism to groups. >> the reagan story is more cut the rates, rationalize the system and have smaller tax increases that add up to quite a bit of money over time. >> reporter: the top incomes tax rates would creep higher. in 2003 president bush inacted federal tax rates. it now stands at 39.6%. how does the u.s. compare to its major trading partners. >> if you take all taxes, all the taxes we pay at federal level, state level, local level and compare it to the total tax burden that is paid in other countries the u.s. is right near the bottom of the list. i think chile and mexico are the only two countries that tax less heavily than we do. every country's tax is more. >> reporter: the big difference is that the u.s. does not have a value-added tax or national consumption tax that other countries have. mary sn