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The US had a tax rate of over 90% for the wealthy in the 1950s (although with loopholes they could push it lower, like now). Didn't seem to have much of an eff

• WalterBright 2y ago
  Very few paid those rates, because there were a large number of tax shelters available. For example, a lot of your personal expenses could be covered by your business. Reagan, as part of the deal to lower the top rates, traded away those tax shelters. The thing about tax shelter investing, however, is they only make sense as a tax shelter. They are poorly performing investments otherwise. A tax policy that encourages poor investments is not a good policy. Keep in mind that the government in the 50s was far, far smaller than it is today. Funding the vast growth in government is inevitably going to get sucked out of the middle class.
  • omnimus 2y ago
    > Keep in mind that the government in the 50s was far, far smaller than it is today. Funding the vast growth in government is inevitably going to get sucked out of the middle class. And where US gov grew? Army. Where that money goes? To few weapon contractors = to ultra rich. Its not like US put those investments in some other pocket than top 10%
• throwaway7ahgb 2y ago
  The old top tax rates are constantly echo'd around and not relevant towards any conversation. The only thing that matters is what the effective rate was. They could create a 100% tax bracket but if nobody paid it, it's just words in a book.