Most people point to the reduction in the top marginal rate as the primary mechanism by which the progressive income tax has been weakened and has contributed t

Most people point to the reduction in the top marginal rate as the primary mechanism by which the progressive income tax has been weakened and has contributed to income inequality. Others will say this is all bunk and capital gains becoming a primary compensation mechanism is what has caused the destabilizing imbalance. There is another thing we've been doing, though - Reagan in 1986 dramatically reduced the boundary of the top tax bracket versus its trajectory in the rest of the 20th century, to 5% of what it had been. Until then, you could reasonably argue about trashing the millionaire's extra yacht so that the $200k-ionaire could succeed. Later politicians raised it somewhat, but never to levels approaching the 50's - 70's. We appear to have tied it all together in order to mobilize the high-skill working people & entrepreneurs to defend the truly rich from having to contribute a larger share.