Originally Posted By: pondering_it_all
Post WWII we were paying a top rate of 93%, and it was one of the most prosperous periods in our history! We need to rethink the whole "lower taxes, improve the economy" idea. Income inequality does NOT improve the economy. Lowering taxes on corporations and the rich only makes that worse.

Even the original Laffer Curve stuff said that if you lower taxes, the government collects more (up to a point). But note that it didn't ever say "lower taxes and improve the economy". It just makes rich people richer, and takes away government services the poor need. The only "trickle-down" you feel on your head is some rich guy pissing on you. Which is exactly what the Trump tax cut did and will do in the future to Social Security and Medicare.

I'm pretty sure our filthy rich wound up keeping quite a bit of their money back then.

I remember meeting my very first millionaire when I was a little kid. (circa 1961)
His name was Jessie York and he owned a manufacturing company that made the finest sheets and pillows money could buy back then.
He owned a very large yacht called "The Four Queens", a couple of Rolls-Royces, a Ferrari, a couple of stretch Caddy limos, a couple of airplanes and he had a home "in the City - NYC" and a vast beachside luxury villa out in Atlantic Beach, Long Island.
He and his family were friends with my uncle, a somewhat famous marlin and tuna fisherman.

This would have been 1961, when people like the Yorks were paying those 80 and 90 percent marginal tax rates.
I guarantee you Jessie York was enjoying PLENTY of his "fat stacks o'cash".

Marginal tax rates tax only the very last few bucks in a rich person's income at that high rate. The vast majority of what they have is taxed at a much lower rate. It's "taxing ON the MARGINS".

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