[ren_engineer]

as others stated there were a lot more loopholes

the other thing people don't mention is that companies got around higher tax rates by giving benefits like company cars and other things to entice employees when giving a higher salary would be stupid due to high tax rates. This is how things like health insurance ended up getting tied to employment, always unintended consequences

[sharkmerry]

It actually wasnt taxes with health insurance. They froze wages during ww2 but exempted health insurance from the cap.

Same result. different cause (in this case)

[calvinmorrison]

I was going to bring this up! good call out