In 1960, the top marginal tax rate was 91%, applying to income over $200,000 for single filers — equivalent to roughly $1.5 million in today’s dollars.
“Gee why was everything cheaper in the 50s, 60s, 70s? how could a family of 4 afford a single family home and two cars on a single income that only required a high school education? Why was XYZ product of a higher quality? Why did worker productivity keep up with wages?”
There’s the obvious answer to this question “we taxed the rich so hard they couldn’t use their wealth to consolidate power and influence, and preventing them for redirecting resources from improving people’s standard of living to deranged self aggrandizing projects.”
And the dumbass mental gymnastics answers “Guberment regulation infringing on the free market, women have some rights now, LGBTQ people aren’t oppressed enough anymore, people don’t go to church enough, THE DEEP STATE!, we used to be more racist, and (((international finance))).” Funny how all those arguments have a bunch of well funded think tanks and unprofitable privately owned media organizations making arguments for them.
Nobody paid the 91% tax rate. Anyone who found themselves over the top tier chose to spend their excess money. If they were $10,000 into the top tier, they could elect to pay $9100 in taxes, or spend $10,000 on payroll and other deductible expenses. They could keep $900, or $10,000 worth of products and services purchased from the open market.
“Gee why was everything cheaper in the 50s, 60s, 70s? how could a family of 4 afford a single family home and two cars on a single income that only required a high school education? Why was XYZ product of a higher quality? Why did worker productivity keep up with wages?”
There’s the obvious answer to this question “we taxed the rich so hard they couldn’t use their wealth to consolidate power and influence, and preventing them for redirecting resources from improving people’s standard of living to deranged self aggrandizing projects.”
And the dumbass mental gymnastics answers “Guberment regulation infringing on the free market, women have some rights now, LGBTQ people aren’t oppressed enough anymore, people don’t go to church enough, THE DEEP STATE!, we used to be more racist, and (((international finance))).” Funny how all those arguments have a bunch of well funded think tanks and unprofitable privately owned media organizations making arguments for them.
Nobody paid the 91% tax rate. Anyone who found themselves over the top tier chose to spend their excess money. If they were $10,000 into the top tier, they could elect to pay $9100 in taxes, or spend $10,000 on payroll and other deductible expenses. They could keep $900, or $10,000 worth of products and services purchased from the open market.
Nobody chose to keep the $900.