I've held that point of view, but heard something recently that gave me pause: The high tax rates of the 1960's were the reason that companies paid their employ

I've held that point of view, but heard something recently that gave me pause: The high tax rates of the 1960's were the reason that companies paid their employees more and/or invested in research, producing things like Bell Labs. The reasoning was that when corporate tax rates are low companies will use the extra money to play financial games, and when corporate tax rates are high companies know they are better of off giving the money to retain/recruit good employees or spending it on research to grow the business instead.