It’s amazing how often this gets mentioned. In truth almost nobody paid that tax rate because it applied only to salaries. Rich people have always gotten most of their income from capital gains (which were taxed at a low rate in the 1950s, just like today).
It applies to income, not salaries, and it applies to corporate income as well as personal income. Nobody needs to pay it for it to achieve its purpose. Indeed, nobody should be paying it, ever.
You have a choice. I’ll give you $900 for you to do anything you want with. Alternatively, I’ll give you $10,000, but you can only spend it on something that you can convince me is something you need for your business.
You can buy $900 of GOOG, or you can spend $10,000 on a bunch of electronics. You can buy $900 of AAPL, or spend $10,000 “entertaining clients” at a strip club.
You can buy $900 worth of stocks, or purchase goods and services produced by workers.
Nobody is taking the $900 here. Everyone is taking the $10,000. Nobody is paying 91% on $10,000 over the line. You can get much more value from your large “business” spending than you can get from your small investment.
Now, if the numbers are $6300 on anything, or $10,000 on business, a lot of people are going to take the $6300. This is a top-tier of 37%.
$7500 on anything, or $10,000 on business, most people are going to take the $7500. This is a top-tier of 25%.
The 91% tax rate isn’t for the government to spend more money. The 91% tax rate is to ensure the richest among us get greater value from hiring workers than they do from buying securities.
EXACTLY! I found something so defeated and defeatist about this thread UNTIL I read your comment.
This was once a reality!
Why do we not have it now?
Obviously an extremely nuanced question but clearly part of that is that even the obscenely wealthy were forced to realize that obscene wealth destroys more than it builds.
We’re a 1950’s 91% top-tier tax rate away from the same.
It’s amazing how often this gets mentioned. In truth almost nobody paid that tax rate because it applied only to salaries. Rich people have always gotten most of their income from capital gains (which were taxed at a low rate in the 1950s, just like today).
It applies to income, not salaries, and it applies to corporate income as well as personal income. Nobody needs to pay it for it to achieve its purpose. Indeed, nobody should be paying it, ever.
You have a choice. I’ll give you $900 for you to do anything you want with. Alternatively, I’ll give you $10,000, but you can only spend it on something that you can convince me is something you need for your business.
You can buy $900 of GOOG, or you can spend $10,000 on a bunch of electronics. You can buy $900 of AAPL, or spend $10,000 “entertaining clients” at a strip club.
You can buy $900 worth of stocks, or purchase goods and services produced by workers.
Nobody is taking the $900 here. Everyone is taking the $10,000. Nobody is paying 91% on $10,000 over the line. You can get much more value from your large “business” spending than you can get from your small investment.
Now, if the numbers are $6300 on anything, or $10,000 on business, a lot of people are going to take the $6300. This is a top-tier of 37%.
$7500 on anything, or $10,000 on business, most people are going to take the $7500. This is a top-tier of 25%.
The 91% tax rate isn’t for the government to spend more money. The 91% tax rate is to ensure the richest among us get greater value from hiring workers than they do from buying securities.
EXACTLY! I found something so defeated and defeatist about this thread UNTIL I read your comment.
This was once a reality!
Why do we not have it now?
Obviously an extremely nuanced question but clearly part of that is that even the obscenely wealthy were forced to realize that obscene wealth destroys more than it builds.